I regretably had to cash in my 401k early. I live in Pennsylvania. I have paid the IRS the 20% plus 10% penalty. I will also have to pay state taxes of 0.0307%.
Will I also have to pay my local (city) taxes on the full amount?
Thank you, Thomas.
in article snipped-for-privacy@o10g2000hsf.googlegroups.com, Thomas at snipped-for-privacy@yahoo.com wrote on 2/17/08 5:10 PM:
It probably depends on your city. In Ohio, most cities levy their local income tax on the amount in the Medicare box on the W-2, not the Federal Wages. They get their tax going in to the 401(k), not coming out. They know there is good chance that you might not be here when you take the distribution.
All freely provided advice guarantee correct or double your money back
Frank S. Duke, Jr. CPA Cincinnati, OH USA
If you made an contributions to your 401(k) that portion of the distribution is not taxed tp Pennsylvania.
George L Anthony Johnstown, PA
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