What Every Citizen Needs to Know About Retirement Fund Distributions

The Tax Consequences of Taking Your 401(k) or IRA

Below are portions taken from the article WHAT EVERY CITIZEN NEEDS TO KNOW ABOUT RETIREMENT FUND DISTRIBUTIONS found in my October 2016 issue of Pilla Talks Taxes. *The full article is available to…

I can’t count the number of times people have told me that the reason for their delinquent tax debt is that they took a retirement fund distribution and didn’t realize the extent to which it was taxable. They might claim that “withholding” was taken from the
distribution which they “thought was enough to pay” what they would owe. As it turns out, that was not the case. Often, no taxes whatsoever were paid on the distribution.

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