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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4099
Experience:  35 years tax experience, including four years at a Big 4 firm.
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How much tax will I to pay taking out 67,000 out of my 401

Customer Question

how much tax will I to pay taking out 67,000 out of my 401
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I work and make appx 75k per year.does this put me in a higher tax bracket?
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and will assist.

Customer: replied 1 year ago.
What is the answer
Expert:  PDtax replied 1 year ago.

I could be more accurate if I knew your state, filing status, number of dependents, and your age. Without that, assume a 10% penalty, a 25% federal tax, and a state tax of say 7%.

You do go into higher brackets when you add that much income.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

Customer: replied 1 year ago.
I live in Massachusetts file single and I'm 60 years old. I make appx 75k
Customer: replied 1 year ago.
Is there a answer
Expert:  PDtax replied 1 year ago.

Hi again. PDtax here. I had to get to our office software, since my estimates were not what you were looking for.

Customer: replied 1 year ago.
Do you have any answers
Expert:  PDtax replied 1 year ago.

I used our 2014 software to estimate your 2015 tax cost for the 401(k) withdrawal.

Expert:  PDtax replied 1 year ago.

The Federal tax and penalty is estimated to be $22,819.

The MA state tax due is $3,224.

The total, $26,043, will be increased for underpayment penalties if warranted.

The total is 42% of the total withdrawal. My estimate was 42%. Pretty good, if I say so myself.

Thanks again from just Answer. Positive feedback is appreciated. I'm PDtax.

Expert:  PDtax replied 1 year ago.

Sorry, I used the wrong amount of 401(k) in my original estimate. The figures above came from a $62,000 withdrawal, and I see the correct amount should be $67,000.

The revised Federal amount is $24,719. The revised MA amount is $3,484. The total, $28,203, is also 42% of the total distribution.

Sorry for the mixup. Positive feedback is appreciated. I'm PDtax.

Customer: replied 1 year ago.
does that include my salary of 75k
Expert:  PDtax replied 1 year ago.

No, that is the additional tax on the additional income.

Thanks again from just answer. I'm PDtax.

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