Have a Tax Question? Ask a Tax Expert
Hi. My name's Lane. I can help here.
Although there is relief from the 10% additional tax penalty (for distributing before age 59 and 1/2) for first time home buyers from an IRA, so sorry, but this doesn't apply to workplace pension plans such as 401(k)'s.
(just wanted to make sure that you weren't saying that you rolled the dollars to an IRA first.)
To calculate the tax, we'll need to know your marginal tax bracket for the year, because the distribution is simply added to your other income for the year - so what ever you distribute will be taxed at that the bracket that you're already in, because of your other taxable income for the tax year. (Plus 10% for the pre-age 59 and 1/2 penalty if it applies)
If you'd like to tell me (1) how you file (single, married filing jointly, married filing separately, etc), (2) your other taxable income for the year, and (3) whether you have dependents, I can run the numbers for you
Just to give you a feel ... Her are the tax brackets for single, and married filing jointly:
Married Filing as single
Tax Rate Schedule X, Internal Revenue Code section 1(c)]
Married Filing Jointly or Qualifying Widow(er) Filing Status
[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]