• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

403b withdrawal

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Kelevra

Member
What is the name of your state (only U.S. law)? CA

I had to withdrawal $22,000 out of my 403b to pay bills and house payments.

I make $85,000 a year working, so tell me is it true that I have to pay IRS taxes on my 403b withdrawal?

Will it put me into a higher IRS tax bracket, if so what percent?What is the name of your state (only U.S. law)?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? CA

I had to withdrawal $22,000 out of my 403b to pay bills and house payments.

I make $85,000 a year working, so tell me is it true that I have to pay IRS taxes on my 403b withdrawal?

Will it put me into a higher IRS tax bracket, if so what percent?What is the name of your state (only U.S. law)?
If it was a true withdrawal, and not a loan then yes, you are subject to tax on the withdrawal. If you are less than 59 1/2, then not only are you subject to tax on the withdrawal, but you will also have to pay a 10% penalty for early withdrawal.

It may or may not increase your income enough to put you in a higher marginal tax bracket. No one can answer that question without knowing the exact details of your tax return.
 

FlyingRon

Senior Member
Well you're lucky (perhaps) that your plan permitted it at all. Except in certain cases that involve circumstances you haven't mentioned, you probably owe a 10% penalty on the withdrawl you owe 28% on what you withdrew (provided you are either single or married filing jointly). That's for the feds, you owe californication tax as well. That's for the pretax contibutions and all the income.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top