Have a Tax Question? Ask a Tax Expert
Hi from just answer. I'm PDtax, and will assist.
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.
Hi again. PDtax here. I had to get to our office software, since my estimates were not what you were looking for.
I used our 2014 software to estimate your 2015 tax cost for the 401(k) withdrawal.
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.
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.
No, that is the additional tax on the additional income.
Thanks again from just answer. I'm PDtax.