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QUESTION DETAIL
Related User
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I have a combined income of $146,000 and I am going to take some funds from my 457 account. I know about the early withdrawal penalty. The initial withdrawal amount is $50,000. The funds manager will automatically withhold 20% which means I will receive
ANSWER
Expert Jay d. Lutz's Answer:
You will be taxed on $146,000 plus the full 457 plan distribution of $50,000. The 10% penalty is an additional assessment due when you file the return and the 20% withholding will come through as a tax payment or credit on your 1040.
