Early Withdrawal

Question: If I take out withdrawals from my 401k after age 59 1/2, are those distributions taxed as income?

I figure they would be taxed since the money is paid into my 401k as pretax income. I know that a Roth IRA distributions aren’t taxed after you’ve reached the minimum distribution age, but I can’t seem to remember if 401k distributions are taxed after you reach the minimum distribution age. Thanks.

Answer: Yes, since you are getting the benefit now of not being taxed, they will be taxed when you take them out. A Roth IRA will NOT be taxed when you take distributions if they are after age 59 1/2.

Stocks, Mutual Funds & Retirement Investments : IRA Required Minimum Distribution