Viewing a single comment thread. View all comments

iguesswhatevs OP t1_jad6cn6 wrote

Reply to comment by Werewolfdad in Just got my check from former employer closing my 401k account by iguesswhatevs

I’m so confused. So you’re saying that, say I have $1000 and I pay $210 or 21% in federal taxes, I still have MORE penalties to pay?

Becuase my check basically shows the $790. And if I already paid my taxes then what else do I still owe?

0

Werewolfdad t1_jad6hsd wrote

Yes. If you don't rollover/convert the full balance ($1000), you pay penalties on whatever amount was withheld. In this case, its $21, but still, that's $21 you don't need to give away

6

iguesswhatevs OP t1_jad71oc wrote

Wait so $21 on top of the $210 or a total of $231 and where did you get that number?

0

Werewolfdad t1_jad76nq wrote

Depends on your income. You could owe more than 21% in just taxes depending on your state. But if you don't "make up" the $210 in your rollover, you will owe a penalty on that $210

5