Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

I am 58 years old and I lost my job in 2017. I need to

Customer Question
I am 58 years...

I am 58 years old and I lost my job in 2017. I need to withdraw funds from my 401K. I have money in a Roth account and in a standard account. What is the best way to withdraw funds to minimize the tax penalty?

Submitted: 6 months ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Answered in 3 minutes by:
3/22/2018
Financial Professional: TaxRobin, Senior Advisor replied 6 months ago
TaxRobin
TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 18,648
Experience: 15 years of experience in financial advising with emphasis on tax issues.
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Finance Question
Financial Professional: TaxRobin, Senior Advisor replied 6 months ago

Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called ”early” or ”premature” distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies.

There is an exception to the penalty for the 401k. When an employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan) you can use 72(t)(2)(A)(v) if you take periodic distributions. This means a specific amount each year would be distributed. Still taxable but you can avoid the 10% penalty.

The ROTH is tax free is you have had it for the 5 years but the earnings would be taxable. Your own contributions are not taxable.

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin
TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 18,648
18,648 Satisfied Customers
Experience: 15 years of experience in financial advising with emphasis on tax issues.

TaxRobin is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I am 58 now in march i will be 59, i am thinking about
hi my name is ***** ***** am 58 now in march i will be 59, i am thinking about setting up a Roth IRA so i can invest it in real estate, one of the ROTH rules i read said you can withdraw the ROTH & ga… read more
TaxRobin
TaxRobin
Senior Advisor
Vocational, Technical or Trade School
18,648 satisfied customers
I have Roth 401(k) at work which I started on 2/2016. I also
I have Roth 401(k) at work which I started on 2/2016. I also have separate ROTH account with Fidelity that I first funded 10 years ago. What options do I have with this Roth 401(k) account to minimize… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I am 60 years old and my wife is 58.We have sold our house
Hello, I am 60 years old and my wife is 58.We have sold our house and are downsizing to a smaller home. We sold our house for 675K. After deducting the existing mortgage (260K) and paying off our HELO… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor's Degree
1 satisfied customers
I am 58 years old and retired from the military in late
I am 58 years old and retired from the military in late 2014. My pension is enough to support my wife and I in our current standard of living. While in the military, I invested in the Thrift Savings P… read more
TaxRobin
TaxRobin
Senior Advisor
Vocational, Technical or Trade School
18,648 satisfied customers
I rolled over $7,000 from a 401k to a Roth IRA. Now at the
I rolled over $7,000 from a 401k to a Roth IRA. Now at the end of the tax year I am paying income tax on the $7,000. We are now buying our first house and I withdrew $10,000 from my Roth IRA to fund o… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor's Degree
1 satisfied customers
Im looking for help regarding withdrawing from a Roth IRA
I'm looking for help regarding withdrawing from a Roth IRA for using that money as a down payment on a house (first time homebuyer). I'm aware I'll have to treat the withdrawal as taxable income, but … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
2,222 satisfied customers
I recently signed up for a new 401k plan with a new employer
I recently signed up for a new 401k plan with a new employer (using ING sharebuilder) and am wondering what the best thing to do with my old employer's 401k (currently with Fidelity). Does it make mor… read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor's Degree
609 satisfied customers
I am looking at withdrawing $40,000 from one of my two Rollover
I am looking at withdrawing $40,000 from one of my two Rollover IRA's, and I am NOT 59 and ½. But I MUST pay off some debt and the way its going this week, I am losing more money in this IRA than what… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
332 satisfied customers
I am currently going through a divorce, and I have a 401k account
I am currently going through a divorce, and I have a 401k account with my previous employer. I wanted to use my 401k to help payoff a second on my house and for some other upcoming expenses. If I with… read more
TaxTom
TaxTom
Accountant
Bachelor's Degree
14 satisfied customers
Hello Dave. I have recently changed jobs. I had a Roth IRA
Hello Dave. I have recently changed jobs. I had a Roth IRA at my old job that I am 'rolling over' into my Roth IRA at my new job. I am being told that the employer contribution of my Roth will be taxa… read more
Eric
Eric
Financial Manager
Bachelor's Degree
559 satisfied customers
i need to cash out my 401k (dur, yes i know its has tons of
i need to cash out my 401k (dur, yes i know it's has tons of bad consequences). the problem is i am still employed. my guess is i need to quit, cash out, then get re-hired - correct? or is there a way… read more
Dean Voelker
Dean Voelker
Bachelor's Degree
12 satisfied customers
I have a small bussiness corporation where only I and my wife
I have a small bussiness corporation where only I and my wife work no emplyee. We have individual 401K plan with brokarge company. I am the administater. I opened this 401k account in 2009. I was not … read more
Bill
Bill
Master's Degree
2,278 satisfied customers
my husband is 57 years old. he has a 401k plan that he wants
my husband is 57 years old. he has a 401k plan that he wants to withdraw a significant portion of it. he is still employed at the company. i know all about the high cost of it, we feel strongly about … read more
JKCPA
JKCPA
CPA
Bachelor's Degree
844 satisfied customers
I just received notice from my employer that they have decided
I just received notice from my employer that they have decided to discontinue their contribution to our 401k plan effective Nov. 1, 2009. This decision eliminates the Safe Harbor matching contribution… read more
Milan Vaishnav
Milan Vaishnav
Consulting Technical Analyst
Bachelor's Degree
536 satisfied customers
I left a job in 2002 and left my 401K with my former employer.
I left a job in 2002 and left my 401K with my former employer. The total amount contributed was $48,500. I have seen my 401K go up to $78,000 and plumet down to its current value of $35,984. Can I cas… read more
Guru_Guy
Guru_Guy
Doctoral Degree
1,634 satisfied customers
I took out a 401k loan when I was 58 years old...I am now ...
I took out a 401k loan when I was 58 years old...I am now 591/2....can I withdraw monies from my 401k and pay off that loan...if so, what rate will I be taxed..Balance of loan $5500.… read more
The Geezer
The Geezer
Master's Degree
120 satisfied customers
Just filed chapter 7 and have the opportunity to buy back ...
Just filed chapter 7 and have the opportunity to buy back the equity in my house from the trustee. I'll be withdrawing from my 401K. How can I minimize penalties and taxes for early withdrawl. I'm 50 … read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
I am quitting my job and going to grad school full time in ...
I am quitting my job and going to grad school full time in January. What should I do with the money I have in my 401K? Should I roll it over into something else? Any suggestions?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x