f I have 250,000 in my 401k an I need to get 188,000 out to buy a home an im 65 what is my tax rate?
If I have 250,000 in my 401k an I need to get 188,000 out to buy a home an im 65 what would e y tax rate, for taking the money out
- A HunchLv 76 months ago
Is there is a reason that you want to pull it completely out to buy the home.
You would be better off, taking a mortgage and paying pulling the money out in smaller batches.
This will result in lower taxes.
- AmyLv 76 months ago
If you are single, the federal tax on $188,000 is $37,207.50 (around 20%). Your state probably imposes an income tax as well. In order to end up with $188,000 after taxes, you would likely need to withdraw the whole $250,000.
If you're married and neither spouse has other income, the tax rate would be a little lower.
Do you want this home enough to spend literally all of your savings? Will you be able to survive on your pension alone?
If you're planning to sell your current house in order to pay for the new one, put that money into an IRA and call it a rollover. You have 60 days from the time you withdraw the 401(k) funds.
- StephenWeinsteinLv 76 months ago
Your tax rate depends on the total of all your income for the year; no one can tell your tax rate for this income without knowing the amount of other income you have.