The Motley Fool Discussion Boards

Previous Page

Financial Planning / Foolish 401(k)s

URL:  https://boards.fool.com/since-the-money-was-not-taxed-when-it-was-16157123.aspx

Subject:  Re: 401(k) distributions Date:  11/22/2001  10:12 PM
Author:  W401K Number:  13685 of 26351

Since the money was not taxed when it was contributed to the plan, all amounts withdrawn from a 401k Plan are subject to regular income tax. If the account was tranfered to T> Rowe Price as an IRA, there are no tax consequences until you withdraw money from the IRA. Whatever amount is withdrawn from your 401k or IRA will be added to your taxable income for the year it is withdrawn. Normal Federal and State tax rates apply. Since you are over 59 1/2 there are no additional penalties for the withdrawal.
hope this helps, if not, please follow up.

Bill
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us