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 Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

Im a long divorced 68 years old, small retirement benefits

This answer was rated:

I'm a long divorced 68 years old, small retirement benefits of $11124.00/Year I'm planning to withdraw about $5.000 from my small 401K. How will this affect me tax wise? Will my investment institution withhold some tax money when I cash in? Thank you.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

You will owe income tax on the withdrawal

Megan C :

Based on your income your total tax obligation will be (hold on a min while I calculate)

Megan C :

Your small pension still leaves you with 0 tax liability

Megan C :

You will have to pay about $500 in taxes, which should be withheld by your 401(k) custodian


Thank you!

Megan C and other Tax Specialists are ready to help you
Thanks so much for your positive rating. Please come back and visit me any time you have a tax question that needs answered. It was a pleasure working with you today.

In the future you may receive a short survey. Your positive feedback on that survey would be greatly appreciated, as it will assist with rankings on the site. Thanks again for being a valued customer.