FICA on 401(K) withdrawals?

Question

FICA is taken out while contributing towards 401(K), so at retirement or during early withdrawal, do I need to pay FICA again?

Thanks.

Answer 1

Distributions from your retirement plan is not earned income that would be subject to the FICA taxes.

The taxable amount of the distribution will be added to all of your other gross worldwide income on your 1040 tax form and subject to income taxes at your marginal tax rate.

Answer 2

no, the FICA was calculated when you earned the money

there is a 10% penalty on withdrawal prior to 59 1/2 of any amount

you will pay income tax to both fed and state on the amount this increases your gross income, not individually

Answer 3

You only pay federal taxes and a federal tax penalty for early withdrawl if you withdraw before you are 59 1/2. You will want to have withheld from your distribution your tax rate plus any applicable penalty.

Answer 4

As you said you paid the FICA due at the time the funds were earned. FICA is not an issue at disbursement from a 401K.

Answer 5

no - your ultimate soc sec benefits are just slightly reduced because you had reduced FICA wages when you earned them and paid into the soc sec system

Answer 6

Taxes are NOT taken out from your 401K contributions.

That's the true beauty of them.



You pay the taxes when you retire.



With the ROTH ira - taxes are taken out now.

But they will be tax free when you retire. (hopefully)

/

Answer 7

No, just income tax

Answer 8

No.