USA Withdrawing Funds from State Retirement

[ericmday]

Hi. Due to the health care system we have, my wife and i may have to withdraw all my retirement funds at once to avoid losing our house and filing bankruptcy. The amount available is 100K. They will take 20% federal and 5% state right off the bat, leaving me 75K. There is also a 10% fee for withdrawing early before the age of 55, leaving 65K. Which is enough to save us. My question is: when we do our 2019 taxes next year, will we be taxed another time? If so, on what amount, 100K? And since our rate is 22% now, can i expect 22% to be taken from the 100K? Thank you for your assistance in this trying time.

 

[bklynboy]

You are not taxed twice but required to include in your tax return. What they have done is taken out an estimated withholding on your withdrawal and this will be trued up/down based on your final tax rate once you file your tax return. No difference than withholding on wages.

 

[ericmday]

Thanks for the reply.