what about 41ok taxable income?

i have only income from a 41ok and drew out a amount is that taxable income

Public Comments

1. First of all, it's 401(k), not "41ok". And yes, the amount that you withdraw from your fund is usually taxable as income. You didn't pay any taxes on the money when you put it into the account, so you have to pay the taxes on it upon withdrawal (when presumably your tax bracket is lower.) If you're younger than age 59.5, you will also have to pay a penalty on the amount of money you withdraw, as well as the tax, unless there are certain extenuating circumstances. Here's some information from the IRS http://www.irs.gov/faqs/faq-kw7.html http://www.irs.gov/taxtopics/tc424.html
2. It could be taxable income. You will receive a 1099R from the financial institution that distributed the money to you. The 1099R will show the taxable amount. If the amount withdrawn is less than $8,750 (if you are single), no income tax will be owed. If you took an early distribution without an exception, then even though no income tax is owed, you will owe a penalty of 10% of the distribution.
3. 401K? You'll show that as pension income - you should have gotten a 1099-R for the amount withdrawn. If your total income including the withdrawal is enough to owe tax, then you'll owe it. If you are under 59-1/2, there is an additional 10% penalty for early withdrawal - you'd owe that whether or not you owed any income tax.