Is 401K Considered Income?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaMoney that is received from a 401(K) plan is considered income in the year it is received. The money contributed to the plan was tax deductible for you, the participant, and the employer. The accumulated earnings on the money have always been tax deferred. It is when the funds are withdrawn that all that deferred money becomes taxable. Retirement income planning is important if these types of funds comprise a major source of income for you.Answered on August 1, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! The money from your 401k account becomes considered income once you start taking your withdrawals from it. Until then, it is just like a savings account - there, but not taxed. Unlike your savings, however, once you start taking the money out, it is considered taxable income. I hope that helps, thanks for asking!Answered on August 4, 2014flag this answer
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