Money taken from your 401 into your personal account is considered income/asset. That's why its never a good idea to remove money from your 401 when youre about to file BK.
Yes, withdrawals from a traditional 401(k) are generally subject to income tax, including if the funds are used to pay off a mortgage in retirement. It's essential to consider the tax implications and potential penalties of withdrawing from your 401(k) before making any decisions.
You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any distribution amounts from your 401K plan.
No
No. It is protected by law.
thenthe distribution amount will be counted as income to you for that yr, you will be receiving 1099 form
Yes.
State & Federal income taxes on $11,000 in the year the distribution was taken.
Withdrawals from 401k accounts are added to your general income for that tax year.
By withholding I will guess that you mean the amounts that you are contributing to your 401K BEFORE income taxes (deferred compensation amount) that will not be subject to the income taxes during the year and will reduce the amount of your taxable gross wage amount that is reported in box 1 of your W-2 form at the end of the tax year. The deferred contribution amounts will be subject to income tax in future years when you retire and start receiving distribution the taxable distribution amounts from your 401K plan and at that time the taxable amounts will added to all of your other gross worldwide income on your 1040 income tax return and subject to the federal income tax at your marginal tax rate.
Personal income distribution and functional income distribution :)
I believe new bankruptcy law exempts all retirement from being touch during bankruptcy so it should be safe
These assets should not be effected at all.