Retirement 401k funds withdraw
How do I pay taxes for funds withdrawn from 401k. I did transaction online and didn’t click for Tax to be taken out. My age 76. Don’t want irs penalties.
Please advise. Thank you
Terry Says
You probably won’t have a tax problem until you file your taxes next year — unless it is a rather large amount that you withdrew. Contact the person who does your taxes, and explain that you might need to make a quarterly estimated tax payment. How much depends on your last year’s income and tax bracket, and the amount of the withdrawal.
This link will give you an idea of how to make an estimated tax payment.
