00:00 - Do I have to pay taxes on my 401k after age 65? 00:41 - How do I withdraw money from my 401k after retirement? 01:13 - How much can I take out of my 401k without paying taxes? 01:42 - How much tax will I pay on my 401k withdrawal at retirement? Laura S. Harris (2021, May 11.) Do I have to pay taxes on my 401k after age 65? AskAbout.video/articles/Do-I-have-to-pay-taxes-on-my-401k-after-age-65-243748 ---------- Our purpose is the importance of education in our society. This video was created under this goal. We would like to give you complete information on the subject, so unfortunately we can also discuss elements that may be hurtful to people....(read more)
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As many people approach retirement age, they wonder if they have to pay taxes on their 401k after age 65. The truth is, there is no simple answer to this question. The taxation of 401k distributions depends on several factors, such as the type of 401k account, the age at which you make withdrawals, and your overall income. If you have a traditional 401k account, you will have to pay taxes on the money you withdraw, regardless of your age. That is because contributions to a traditional 401k are tax-deductible, so you defer paying taxes until you withdraw the money. When you make withdrawals, they are taxed as ordinary income. This means that if you withdraw $50,000 from your traditional 401k in one year and you are in the 25% tax bracket, you would owe $12,500 in federal income tax. However, if you have a Roth 401k account, you have already paid taxes on your contributions, so withdrawals are generally not subject to income tax. To make tax-free withdrawals from a Roth 401k account, you must have held the account for at least five years and be at least 59 1/2 years old. Another factor that can affect the taxation of your 401k withdrawals is your age. If you are between the ages of 55 and 59 1/2 and you leave your job, you can withdraw money from your 401k without penalty, but you will still owe income tax on the amount you withdraw. If you are 59 1/2 or older and you make withdrawals from your 401k, you will not incur any penalties, but you will owe income tax on the amount you withdraw. Finally, your overall income can affect the taxation of your 401k distributions. If you have a substantial amount of retirement income from other sources, such as Social Security, pensions, and investments, you may push yourself into a higher tax bracket when you withdraw money from your 401k. This could result in owing more income tax than you anticipated. In conclusion, the taxation of 401k distributions after age 65 depends on several factors, including the type of account, your age, and your overall income. While traditional 401k distributions are subject to income tax, Roth 401k distributions may be tax-free. It is also important to consider your overall retirement income and how it may affect your taxes. Consulting with a financial advisor or tax professional can help you make informed decisions about your 401k and retirement planning. https://inflationprotection.org/is-it-necessary-to-pay-taxes-on-my-401k-once-i-reach-the-age-of-65/?feed_id=104630&_unique_id=647dfc2a50b02 #Inflation #Retirement #GoldIRA #Wealth #Investing #askabout #doihavetopaytaxesonmy401kafterage65 #whencaniwithdrawfrom401k #401k #askabout #doihavetopaytaxesonmy401kafterage65 #whencaniwithdrawfrom401k
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