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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15711
Experience:  15years with H & R Block. Divisional leader, Instructor
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My wife & I are both over 60 - we want to close out our

Customer Question

My wife & I are both over 60 - we want to close out our 401k's to by a trailer - whatis the tax liability - the amount would be about 70,000
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Customer: a mobile home
JA: Is there anything else the Accountant should be aware of?
Customer: I just need to know the tax liability - all the money belongs to us
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Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


The $70,000 will be added to your other income and taxed at the rate for your filing status.

If the $70000 was your only income for the year then the tax would be $6,490. That is joint filing with standard deduction.

The 401k is not taxed differently than your regular income. If you receive SS then some of that would be taxable because of the $70,000.

As you are each over 59 1/2 there would be no additional penalty for an early withdrawal.

Expert:  Robin D. replied 1 year ago.

Checking to see if you responded