00:00 – Do I pay taxes on 401k withdrawal after age 60?
00:43 – How is tax calculated on 401k withdrawal?
01:14 – Does 401k withdrawal count as income?
01:42 – How does 401k withdrawal affect tax return?

Laura S. Harris (2021, May 11.) Do I pay taxes on 401k withdrawal after age 60?
AskAbout.video/articles/Do-I-pay-taxes-on-401k-withdrawal-after-age-60-243749

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If you are 60 years or older and are planning to withdraw money from your 401k account, you might be wondering if you need to pay taxes on the withdrawal amount. The answer is yes, you will likely have to pay taxes on any money that you take out of your 401k account at age 60 or above.

The reason why you have to pay taxes on a 401k withdrawal is because these accounts are designed to help you save for retirement on a tax-deferred basis. You do not pay taxes on the contributions you make to a 401k account, and the money that you earn from your investments grows tax-free until you withdraw it. However, when you take money out of your 401k account, it is considered taxable income, just like any other income you earn.

The amount of taxes that you will have to pay on a 401k withdrawal after age 60 will depend on several factors, including the amount of the withdrawal and your other sources of income. If you have no other income, you may be able to withdraw a certain amount of money from your 401k account without having to pay any taxes at all. However, if you have other sources of income, such as Social Security or a pension, your 401k withdrawal may be subject to some taxes.

Another factor that can affect your taxes on a 401k withdrawal is whether you take the money out in a lump sum or as a series of payments. If you take the money out all at once, you may be subject to a higher tax rate than if you take the money out in smaller increments over a longer period of time.

If you are concerned about the taxes on your 401k withdrawal, it is a good idea to speak to a financial advisor or tax professional for guidance. They can help you plan your withdrawal strategy to minimize your tax liability and ensure that you have enough income to support your retirement years.

In summary, if you are 60 or older and are planning to take money out of your 401k account, you will likely have to pay taxes on the withdrawal amount. However, the amount of taxes that you will have to pay will depend on several factors, including the amount of the withdrawal, your other sources of income, and how you choose to withdraw the money. Consulting with a financial advisor or tax professional can help you plan your strategy and minimize your tax liability.