CA93619 Posted August 23, 2022 Posted August 23, 2022 I'm retired and looking into purchasing real estate with some of my funds from my 457 account. I'm trying to figure out the federal tax rate If I make a withdrawal. Does it count as income that will it be added to our annual income between my retirement and my wife's salary? If that is the case it will probably bump us into a higher tax bracket. Or is there straight federal tax rate when you make the withdrawal? I live in California so I know they will want their share as well. I plan on talking with my CPA, but I thought this forum would be a good starting point and get advice from others on here. Thanks!
Carol V. Calhoun Posted August 24, 2022 Posted August 24, 2022 It will be added to your annual income for tax purposes. Luke Bailey 1 Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.
CuseFan Posted August 24, 2022 Posted August 24, 2022 That is, taxed as ordinary income at whatever incremental rate bracket applies to your situation. I assume FICA and Medicare taxes were applied during the accumulation of your account, otherwise those taxes would be due as well. Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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