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 PDtax Your Own Question
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4104
Experience:  35 years tax experience, including four years at a Big 4 firm.
64119565
Type Your Tax Question Here...
PDtax is online now
A new question is answered every 9 seconds

What do I have to pay when I cash out my 403b? I am 62yrs old.

Customer Question

what do I have to pay when I cash out my 403b? I am 62yrs old. live in okla. app. 33k
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.
Welcome to the site. I'mCustomer and will be helping you today.
When you cash out of your plan, if you take a lump sum cash distribution, withholding will be taken from the check you receive. When you file your return, you will report the income and the tax withheld, and pay any difference or get a refund of excess withholdings.
If you make a trustee to trustee rollover of the funds into an IRA, you will take control over the funds, but no taxes to pay until you take distributions. You could defer taxes until age 70 1/2 if you choose to defer taking distributions until then.
Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer
Customer: replied 1 year ago.
what I want to know is the dollar amount what I willI have to pay out of the 33,000 I have in my 403b..I am 63 years old so they should not be in early withdrawal penalty should there
so what will the Be my net from the thirty three thousand...this is my question
Expert:  PDtax replied 1 year ago.
There won't be a 10% penalty, since you are over 59 1/2.
Federal and state taxes apply, totaling about 20%. It's hard to be more precise without knowing more about your income or filing status.
Thanks again. Positive rating is appreciated. I'mCustomer
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I would like to provide little more information.
Assuming this would be your only income, you are NOT collecting social security yet and your filing status is single, no depends and taking standard deduction your tax will be around $3000.
If you give me some more information (your filing status, your other income and social security income) I can give you more accurate answer.
Expert:  PDtax replied 1 year ago.
Hi again.Customerhere.
Since another expert has offered to assist, please specify by name which of us you might want additional assistance from.
Again, positive feedback is appreciated. I'mCustomer