Taxes from 401K

I'm 60 years of age and withdrew out of my 401K for $5000.00 they took out $10.00 for a processing fee and  $998.00 for Fed tax and $99.80 for Calif state tax ending with a check of $3892.20, do I need to worry about having a penalty or paying more taxes on this money?

Maybe.  The tax withholding is a default percentage, not the actual tax..  You will include the total distribution in your total taxable income when you file your tax return for he year.  Depending on all your income/deductions/credits, you may owe more or get a refund.

It appears your distribution was eligible for rollover to an IRA.  To the extent you rollover some or part of it, that portion will not be part of your taxable income.

Thanks David 

Some local jurisdictions may apply a local tax. So it is hard to say with complete assurance.

Thanks Bob, I’m just hoping I don’t have to pay  penalty taxes because I didn’t place it in Roth account 

Though just paying taxes as if it were a paycheck from my work I’m thinking I should be okay. I might just save $500.00 in case of extra taxes. Actually I’m 61 and retired from UPS a few years ago. 

Buddy don't over think it is a simple as having $5,000 additional ordinary taxable income this year.

You had 20% withheld for federal tax and 2% withheld for state income tax.  That may be more or less than you owe on just this piece. But the withholding will be a credit against what your eventual total tax bill is for 2019. If your taxable income for 2019 is less than $100,000 it is very likely that the withholding on just this piece will more than cover the taxes you owe on just this piece, at least for federal. But I'm not a CPA nor do I know your full tax situation but most people with $100,000 or less in income have an effective tax rate that is lower than 20%.

If you were under 59.5, which you are not, you'd have an additional 10% penalty but because you are over 59.5 you don't need to worry about that.

Don't forget:  If you are still within 60 days, you can do a rollover (all or part).  This is described in the "Special Tax Notice", which you should have received at the time you elected your distribution.

Thanks David for telling me about the rollover and Lou I really appreciate your reply as I have nothing to worry about withdrawing the money where it is already taxed. I had planned never to touch my 401K and I thought 5000,00 really wouldn’t hurt me as long that I had taxes taken out though I still worried. I have been married for 40 years in April so my wife and I are going to Maui flying first class and renting a beautiful condo on Kaanapali Beach. My wife has stage 4 breast cancer so we are celebrating our 50th on the 40th because she might not be around in 10 years, I hope she will be but we don’t the future. I needed the money for the deposit on the condo. 

5 hours ago, Buddy M said:

Thanks David for telling me about the rollover and Lou I really appreciate your reply as I have nothing to worry about withdrawing the money where it is already taxed. I had planned never to touch my 401K and I thought 5000,00 really wouldn’t hurt me as long that I had taxes taken out though I still worried. I have been married for 40 years in April so my wife and I are going to Maui flying first class and renting a beautiful condo on Kaanapali Beach. My wife has stage 4 breast cancer so we are celebrating our 50th on the 40th because she might not be around in 10 years, I hope she will be but we don’t the future. I needed the money for the deposit on the condo. 

 

Buddy- best wishes to both you and your wife. Life is short, enjoy your trip!

Thanks, ratherbereading we will I know it will be a blast