401k Withdrawal

Aug 17, 2007 1 Replies

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Tx1 18 years ago

I worked in the US for a few years and then moved back to my home country. I have around $57,000 USD in my Fidelity

401k account.

I am not yet of retirement age (still in 30's), but would like to withdraw the money. Fidelity said there would be a

10% penalty & a 20% Federal Tax withholding, but 20% may or may be the actual taxes I owe. Assuming no other income for the year, other than the 401K withdrawal, how much would be actual tax I would have to pay on that amount.

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BillPatch 18 years ago

$57,000 AGI, one exemption, zero itemized deductions, single

2006 rate yields a total tax of $15,522.75 on Form 1040NR including the $5700 penalty . Besides the 20% withheld, $3200 in estimated tax would be due in 2007. You could save about that $3200 by dividing the withdrawal between two tax years, up to $35250 in 2007, the balance after December. Only $400 in estimated tax would be due. Bill Patch

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