Comments on: 401(k) Always Taxed Short Term Capital Gains

By: joe kid

joe kid — Thu, 10 Nov 2011 07:13:10 +0000

I am 67 years old and have 50,0.00 in 401k. How much tax will I have to pay and how long does it take to get the lump sum?

By: John

John — Wed, 31 Mar 2010 21:09:34 +0000

The alternative would be not to defer, get taxed on what you would have deferred (say $10,000), net 40% less ($6,000), and invest that. So now rather than $10,000 in a 401k, you have $6,000 in a regular investment account. If you assume 30 years @ 5% annual, then you have only $26,000 vs. $43,000 in the 401k account. And you would still owe capital gains in the regular investment account.

By: cogcan

cogcan — Thu, 25 Feb 2010 14:46:03 +0000

401k is ordinary income

By: TaPlun

TaPlun — Tue, 01 Dec 2009 19:50:41 +0000

I’m assuming the capital gains rates are for both the Federal and State level income taxes – yes?

By: retirehappy

retirehappy — Tue, 21 Apr 2009 12:16:40 +0000

No you won’t, it is all taxed the same. I was just saying what rate they were taxed at.

By: M.jefferies

M.jefferies — Sun, 19 Apr 2009 13:26:28 +0000

I have a brokerage link in my 401k and often short term trade with 10-15% fast returns. Are you saying I need to keep track of each and every one of them for tax purposes 20-30 years from now? I thought it was all taxed at the same rate when taken out at retirement? Thanks.