Depending on your tax bracket at the time of withdrawal, your 401(k) money could be taxed at around 20% or 30%.
Note that if you have a Roth 401(k), which is funded with after-tax dollars, you won't be taxed when withdrawing.
The longer you can wait to touch your 401(k) money, the longer you'll delay owing taxes.
Finally, there's the "non-taxable portion," he said, which would be money in accounts like a Roth 401(k), Roth IRA, and HSA.
Or do they have a Roth IRA that they can take it from tax-free to benefit them?"
Persons:
—, Grant Neiland, there's, you'd, Roth, Neiland, you've
Organizations:
Service, Business, Carson Wealth, IRS, Roth IRA