How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

i retired 1/1/08 and i will be 60 yrs old in october. i want

Resolved Question:

i retired 1/1/08 and i will be 60 yrs old in october. i want to withdraw all money from my 401k at my old employer. they will take out taxes and i don't think i have to pay a 10% penalty. do i have to roll over any or all of my withdrawal?
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.


Hi and welcome to Just Answer!


Because you are over 59 1/2 at the time of distribution - there is no 10% penalty.
However - the distribution from your 401k plan will be added to your taxable income.


That is up to you - if you want to use the money or to rollover to the IRA account.
If you rollover part of your distribution - that part will not be taxable.


When you take a distribution - the administrator is required to withhold taxes - unless you specifically ask not to withhold.
However - your tax liability will be determined at the tax time - based on your total income, filing status, deductions, etc.


I will estimate your possible tax liability if you provide your total taxable income and the amount of expected distribution.

Lev and other Tax Specialists are ready to help you
Customer: replied 4 years ago.
agi was less than $30000 last yr and distribution amt is approx $75000. tax rate is 20% only.
Customer: replied 4 years ago.
state tax is my choice of %. i usually owe Va state taxes of approx $100.00.
Expert:  Lev replied 4 years ago.

Assuming you are single, standard deduction, $30,000 gross income, no other deductions or credits - your estimated income tax liability would be $2600


With additional $75000 taxable distribution - your total income will be $105,000 - and expected tax liability - $20,300.

That means - your ADDITIONAL tax liability because of the distribution is estimated as $17,700.


Because of large taxable income - you are pushed into a higher tax bracket.

To reduce the tax pressure - I might suggest to spread the distribution over several years.

Lev and other Tax Specialists are ready to help you

Related Tax Questions