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I have a combined income of $146,000 and I am going to take some funds from my 457 account. I know about the early withdrawal penalty. The initial withdrawal amount is $50,000. The funds manager will automatically withhold 20% which means I will receive


Expert Jay d. Lutz's Answer:

You will be taxed on $146,000 plus the full 457 plan distribution of $50,000.  The 10% penalty is an additional assessment due when you file the return and the 20% withholding will come through as a tax payment or credit on your 1040.

Jay d. Lutz, CPA

North Carolina

22 yrs experience

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