|
|
| *Loan,banking and credit>>>tax accounting |
Do I need to pay taxes on the interest gained in the 401K account? |
Do I need to pay taxes on the interest gained in the 401K account, considering that I'll withdraw dollars in there after the age of 60? Yes, you'll need to pay taxes on your 401 interest -- but not until you withdraw it -- presumably you'll be in a more "favorable" tax position after retirement, when you begin drawing on your 401K. Taxes are paid when one withdraws money from the 401K account. For more information, a quick search on the irs.gov website will give you accurate, current information. You betcha. IRA's and 401K's are tax deferred retirement vehicles, meaning they will grow interest free until you take out the money. Then you get slammed with the taxes. See if you qualify for a ROTH-IRA. Whatever amount you contribute is taxed first then it goes into your account. Whatever your account earns at the end, is ALL yours. You can't get taxed twice. 401k is tax-deferred program to help workers saving for retirement. everything you put in there is all tax defer. IRS rules that at the of 59 and 1/2. money withdraw from that account will be tax as ordinary income |
| Tags |
| tax accounting tax advice tax attorney tax bracket tax calculation tax calculator |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |