Liquidating your 401k account

by  |  25-Nov-2019 03:13

You choose how much pre-tax income you wish to contribute and that amount is automatically deducted from your paycheck and placed into your account within the 401k plan.

Your retirement savings can continue to grow tax-deferred until you make a withdrawal.

The information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties.

Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

Evaluate whether you need to liquidate the entire IRA.

Many of the costs you might use your IRA to pay are considered allowable early distributions.

When you liquidate your IRA, you'll only owe taxes on the portion of the distribution that comes from deductible contributions and earnings.

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