I am 66 years old and wish to retire and remove all of my funds from my 401k.I am told that I have to pay the 20% tax right now.Is there any way I can delay
this until tax time next year?
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401k and taxes
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 donihealy |
401k and taxes |
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Posts: 2 (06/03/08 11:41:22) |
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401khelpcenter |
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Posts: 355 (06/04/08 10:49:11) |
Yes, you can delay the tax payment by first rolling the funds to an IRA and then making the withdrawal from the IRA.
But why are you taking out all the funds? Are we taking about a small amount? Otherwise you should only be withdrawing what you need to live on so that you spread out (and possibly reduce) the tax bite. |
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