Q. I recently called my 401(k) company to inquire about a withdrawal. I asked three different people and received three different answers. One person told me a withdrawal will mean a 10% flat tax ...

Of course, your salary pre-retirement is taxable. Fusillo said Thrift Savings Plan contributions are taxed when made. in other words, they are not salary deferrals for New Jersey tax purposes.

Some others with a state income tax do not tax 401 (k) withdrawals in retirement, including Illinois, Iowa and Pennsylvania. New Jersey allows retirees to exclude some income from state taxes ...

Q. My only income is from a 401(k). Is that eligible for the pension exclusion? I only saw references to pensions, annuities or IRA distributions. — Retired A. New Jersey, known for its high ...

Confused about where your retirement income will come from? Learn the optimal withdrawal order for your taxable, tax-deferred and tax-free accounts to minimize taxes and maximize your retirement ...

Some others with a state income tax do not tax 401 (k) withdrawals in retirement, including Illinois, Iowa and Pennsylvania. New Jersey allows retirees to exclude some income from state taxes ...

Q. I took a COVID hardship withdrawal from my retirement account in 2020. New Jersey did not adapt the same guidelines as the federal government, which allowed the income to be spread over three ...

To soften the blow of a 23-cents-a-gallon tax hike to shore up New Jersey’s transportation fund, state legislators added a gimme to retirees: quintupling the state retirement income tax break ...

What's the cost of withdrawing from your 401 (k) early? The money is meant for retirement, meaning the government will take a hefty cut. You'll pay federal and state taxes.

Avoid early withdrawals from retirement accounts, such as IRAs and 401(k)s, which incur tax penalties. Consider taking some withdrawals before age 73 to minimize future tax burdens. Roth IRAs ...

“The IRS charges a 10% penalty tax for early 401 (k) withdrawals. That’s on top of the taxes you pay for making any 401 (k) withdrawal,” said Todd Stearn of The Money Manua l.

Try these strategies to minimize taxes on money you set aside for retirement.