Quote:
Originally Posted by Minkoff
How am i taxed on 401K? If I wait till I am 60 to withdraw my 401K $ Am I taxed on the money as ordinary income?
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Yes, by both the state and federal govt as odinary earned income. No SS/Medicare tax though as that was paid on the way into the account.
If you retire or other wise separate from the plan provider you can roll the money over tax free into an IRA which gives you greater flexibility and fewer fees. Just don't take possession of the money your self, make sure it goes form one investment house to another. Most if not all will do all the leg work for free.