I'm 61 years old and on long term disability. I am married and our only income is my disability income and SSI income from Social Security which are both tax free. Also my wife earns about $4,000 a year as a substitute teacher. I want to withdraw $30,000 from my 401K account. How much tax will I owe? Can my medical expenses and any other deductions offset the income?

ANSWER

Expert Eugene Jaspan's Answer:

 Without knowing all of your allowable deductions and tax that you have withheld from your income, it is very difficult to determine how much you would owe the IRS.  What i can tell you is that the $30,000.00 you withdraw from the 401(k) will be considered taxable income.  To the extent your medical expenses exceed 7.5% of Adjusted Gross Income, you can take a deduction for unreimbursed medical expenses on Schedule A of your tax return, assuming you itemize deductions.

Cordially,

Gene Jaspan, CPA

Eugene Jaspan, CPA

New Jersey

24 yrs experience

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