Tax Guys - Consequences for Cashing out Profit Sharing Account? (1 Viewer)

[Thorn]

My job has an old school profit sharing plan. The company deposits a couple thousand dollars a year into a Merrill Lynch account. We dictate the investments. I would like to access this money now. I didn't pay any tax on the money, in fact, it was never routed through my pay. The company deposits it for my benefit.

Will I simply owe income tax on it if/when I liquidate it? Or are there other factors involved?

 

[RUSF18]

Normal gains on the investment proceeds?

 

[Thorn]

I didn't deposit the money, so I don't think I would realize any gain, just income. I think.

 

[Thorn]

bump

 

[fourd]

Income tax plus a 10% penalty if under 59 1/2. It sounds like you aren't rolling it into an IRA.

 

[Thorn]

Income tax plus a 10% penalty if under 59 1/2. It sounds like you aren't rolling it into an IRA.

That is my thought. Thanks.