02-04-2005, 02:36 AM
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 Re: Early Distribution from 401K - taxed Social Security? dojocre8[at]yahoo.com wrote: - quote - > I left my job in 2004. I cashed out and received "Early"
No, you paid those when you made contributions to the 401k> distribution in 2005. I've been self-employed since I > left that job (2004). > Will I have to pay SS/Med tax on the distribution? (check you W-2 forms) for previoous years. - quote - > Will I have to pay self-employment tax on the distribution?
No, it is not self employment income. See previous comment> If so, can I deduct 1/2 the amount? about SS/MC taxes. - quote - > Will I have to pay Georgia State taxes?
Yes and yes> If so, does it count as regular income? - quote - > Is the distribution taxed as a whole or spearated into my
It is all ordinary income, there are NO capital gains in a> contributions, employers contributions, capital gain with respect > to SS/Med and State? tax-deferred account. Again, SS/MC taxes do not apply. - quote - > If separated, how is each taxed?
Moot point - it is not separated.- quote - > Should I withhold from my self-employment income according
Your employer already took a mandatory 20% off the top for> to tax bracket after distribution, before distribution, or > without considering distribution? withholding on the distribution. This will likely NOT be enough to cover the taxes due, especially if you also are subject to the 10% early withdrawal penalty tax. You don't withhold from self employment income, but you could increase your quarterly estimated tax payments so that pay at least as much in as your tax liability from 2004. Alternately, you can estimate your 2005 taxable income and taxes and pay in at least 90% of that amount. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-02-2005, 08:38 PM
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| Early Distribution from 401K - taxed Social Security? Hello, I left my job in 2004. I cashed out and received "Early" distribution in 2005. I've been self-employed since I left that job (2004). Will I have to pay SS/Med tax on the distribution? Will I have to pay self-employment tax on the distribution? If so, can I deduct 1/2 the amount? Will I have to pay Georgia State taxes? If so, does it count as regular income? Is the distribution taxed as a whole or spearated into my contributions, employers contributions, capital gain with respect to SS/Med and State? If separated, how is each taxed? Should I withhold from my self-employment income according to tax bracket after distribution, before distribution, or without considering distribution? Any help appreciated. Thanks, Rey << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| 401k, distribution, early, security, social, taxed |
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