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If you are over 59 1/2 and withdraw from your 401k to buy a…

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If you are over...

If you are over 59 1/2 and withdraw from your 401k to buy a house for cash. They will withhold 20% of your money right?

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

Withdraw 124,000 ..they will withhold 20% (24,800) so end up with 99,200. Add that with our income of 124,000 will bring our annual income up to 223,200. Standard deductions. 2 exemptions. I had figured we would owe about 40,000.. Would I deduct the 24,800 from that? And then I would deduct what we had withheld from our paychecks (17,000). So would I end up not owing anything else at tax time?

Accountant's Assistant: Is there anything else important you think the Expert should know?

I think that covers it.

Submitted: 11 months ago.Category: Tax
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9/20/2017
Tax Professional: Robin D., Senior Tax Advisor 4 replied 11 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,391
Experience: 15years with H & R Block. Divisional leader, Instructor
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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.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 11 months ago

Would I deduct the 24,800 from that?

You will report the withheld amount as a payment just like you do the taxes withheld shown on your W2.

And then I would deduct what we had withheld from our paychecks (17,000).

Yes your withheld (as I stated above) is all shown on your return as payments for the tax laibility

So would I end up not owing anything else at tax time?

If your tax liability is $40k and you have more than that amount withheld you would receive a refund of the over amount

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 11 months ago

In your example that refund would be $1000

Please let me know if you need more information.
If not then scroll up to see the STARS to rate so I am credited.

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Customer reply replied 11 months ago
just to be sure I figured it right, do you come up with 40,000 (roughly) as my tax bill?
Tax Professional: Robin D., Senior Tax Advisor 4 replied 11 months ago

I did not do an estimate but one moment and I will do that......................................

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 11 months ago

I used the standard deduction and estimate tax liability of $50600

Please let me know if you need more information.
If not then scroll up to see the STARS to rate so I am credited.

Any call offer is site generated, just ignore it.

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