02-07-2005, 04:02 PM
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 Re: Early Distribution from 401K(cashout) & SS/MED , State Taxes "Rey" <dojocre8[at]yahoo.com> writes: - quote - > I left my job in 2004 and have been self-employed ever
Didn't you just ask all this?> since. I received full early distribution from my 401K Jan > 2005. > Things I know: > 10% penalty from total amount > 20% already withheld strictly for Federal income taxes > Things I don't know: - quote - > 1) Since I'm self-employed when I received the distribution,
No.> will I have to pay full self-employment tax (6.2% + 6.2% + > 1.45% + 1.45% - 15.3%)? - quote - > 2) If so, can I deduct 1/2 of that amount that an employer
Moot point since answer to (1) is no.> would normally contribute? - quote - > 3) Will I have to pay Georgia State income taxes on the
I'm not familiar with GA specifically, but if it's like> distribution? other states with an income tax, yes. - quote - > 4) If so, is it taxed as normal income or handle
Normal income (but see (3)).> differently? - quote - > 5) Is the taxable amount taxed all the same,
Yes.- quote - > or are my contributions vs employers contributions vs
No.> capital gains all taxed separately and differently - quote - > 6) Lastly, should I be withholding from my self-employment
Take the distribution into account.> income according to tax bracket after distribution, before > distribution, or do not take in consideration the > distribution at all? -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-03-2005, 05:27 PM
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| Early Distribution from 401K(cashout) & SS/MED , State Taxes I left my job in 2004 and have been self-employed ever since. I received full early distribution from my 401K Jan 2005. Things I know: 10% penalty from total amount 20% already withheld strictly for Federal income taxes Things I don't know: 1) Since I'm self-employed when I received the distribution, will I have to pay full self-employment tax (6.2% + 6.2% + 1.45% + 1.45% - 15.3%)? 2) If so, can I deduct 1/2 of that amount that an employer would normally contribute? 3) Will I have to pay Georgia State income taxes on the distribution? 4) If so, is it taxed as normal income or handle differently? 5) Is the taxable amount taxed all the same, or are my contributions vs employers contributions vs capital gains all taxed separately and differently with respects to self-employment tax and state tax? 6) Lastly, should I be withholding from my self-employment income according to tax bracket after distribution, before distribution, or do not take in consideration the distribution at all? Thanks, Rey << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| 401kcashout, distribution, early, ss or med, state, taxes |
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