Question : Do I need to file taxes for my 401 K Retirement Plan?
And how much money you get back with your 401 K retirement plan?
- asked by asm0586
All Answers:
Answer #1
Only when you cash out.
- answered by ElOsoBravo
Answer #2
If you are over 59 1/2, then the income you takefrom it will be ordinary income. If you are underthat age, it is still ordinary income but issubject to a surcharge penalty. If you are nottaking money out, then all of the "income" thefund is earning is not taxable.
- answered by extra_37
Answer #3
It is not clear if you are an employer oremployee.If you are an employer funding a 401kplan you will have to submit annual informationreturns to the IRS. The plan administrator oryour accountant can do those for you.If you are anemployee, any payments you make are deductedbefore your employer calculates your withholding. So, if your tax rate is 15%, every $100 you put inonly costs you $85. The only time makingcontributions should be reported on your taxreturn is if your income is low enough to claimSaver's Credit. Go to irs.gov and search for Pub590.When you retire, payments from your 401k willbe subject to tax. However, you may not actuallypay any tax. that will depend on your otherincome at that time.
- answered by skip
Answer #4
I am assuming that your deductions for money putinto the 401K is pretax, so you got the benefit ofpaying no taxes on it with each paycheck(typically no more benefit when you file).However,you might qualify for a credit come tax time thatis for people who put money into a retirement plan& they meet certain criteria (based on your income& age). It's meant to encourage people enteringthe workfroce to put money into a retirement plan. Checkout:
http://www.irs.gov/pub/irs-pdf/f8880.pdfOtherwise, don't do anything with your 401K until youtake money out of it (hopefully won't be until youretire, otherwise there are penalties).
- answered by Julie
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measure and fulfill your financial needs
