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Author: wskwlh68 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19380  
Subject: tax on 401k withdrawals Date: 8/8/2001 11:57 AM
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I have a question that has probably beeen asked before. I know that taxes are paid on withdrawals in the year of withdrawal and the amount in accordance to you income. Is the tax withheld by the provider or is it estimated by the person receiving the monies?
Walter
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7238 of 19380
Subject: Re: tax on 401k withdrawals Date: 8/8/2001 12:19 PM
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I have a question that has probably beeen asked before. I know that taxes are paid on withdrawals in the year of withdrawal and the amount in accordance to you income. Is the tax withheld by the provider or is it estimated by the person receiving the monies?
Walter


Usualy your choice unless you are closing the account. Then at least 20% is withheld.

But you maybe subject to quarterly estimated tax payments so if the money is not withheld you will have to pay the tax each quarter.

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7239 of 19380
Subject: Re: tax on 401k withdrawals Date: 8/8/2001 1:15 PM
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I know that taxes are paid on withdrawals in the year of withdrawal and the amount in accordance to you income. Is the tax withheld by the provider or is it estimated by the person receiving the monies?

Withholding of 20% for Federal tax is mandatory. You can request more, but not less. See Publication 575.

If the withholding isn't enough, you may also need to make estimated tax payments. See Publication 505.

Phil Marti
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