401k tax question

tkim11 · Jan 12, 2009

Ok, I liquidated my 401k this past summer (was in a lil trouble) and now I'm confused. I had lil over 8k and got lil over 5k and paying all the things I think I paid upfront.

How do I report this to the IRS? The fed took their share and so did the state. But I dont know if I need to pay more or not. I know this is an additional income so will I be getting some form from my prv company on top of the W2?

BetIt · Jan 12, 2009

You should receive a 1099-R (I believe that's the correct form) in the mail from whoever your 401K was with.

shdw01 · Jan 12, 2009

you will get a 1099 and this will go on your 1040....if you did withholding as you said, you should be okay with the added income.

tkim11 · Jan 12, 2009

I've heard some horror stories about owing shit load of money after withdrawal. I think after taking about lil less than half of my money that would be enough. Fucken IRS, better leave me alone.

Jetplane · Jan 12, 2009

owing a shitload--IF--they didn't take their share. if you did then you'll be fine. You'll be getting the 1099 from the 401k company like they said. Give that to your tax preparer.

PatrickMcIrish · Jan 12, 2009

Isn't there all kinds of taxes and penalties for taking this early? Maybe they take those fees upfront? I know if you don't roll it over into another program within 60 days or so they really bend your ass over. I wouldn't have touched it unless it was a last resort.

BetIt · Jan 12, 2009

-8K
-Got 5K
-3K in taxes/penalty, etc

10% early withdrawal

-$800 penalty

Assuming he has other income...4.75% for MD

-$380 state taxes

-Leaves about $1820 for federal taxes on 8K income. That's about 22% for federal taxes. Assuming he makes more than 32.5K, he's probably going to owe on it.

401k tax question

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