Levine, Jacobs & Company, LLC, Senior Member Discusses Taxes on 401(k) Withdrawals
Michael H. Karu, CPA/CFF explains how living in a different state affects taxes on 401(k).
- Newark, NJ (1888PressRelease) October 21, 2022 - Michael H. Karu, CPA/CFF, Senior Member, Levine, Jacobs & Company, LLC., was highlighted on NJ.com for providing clarity on the impact of one’s residency status affects state and federal taxes regarding their 401(k).
In the article, Karu discussed if a New Jersey couple retires and moves to Florida, would they have to pay taxes on their 401(k) and should taxes be filed separately to prevent ‘IRS red flags’.
Karu stated, “Withdrawals from a 401(k) will be federally taxable regardless of what state you live in. But there is a caveat in the law that allows for spouses residing in separate states to file as married filing jointly for federal tax purposes and married filing separately for state tax purposes”.
Karu also recommended that once one moves to a different state, they should change their personal information as soon as possible such as their driver’s license, voter registration, license plates, and address on bank statements. He emphasized it’s very important to keep a log to track this information for when tax season comes.
Additionally, Karu said, “As far as any federal ‘red flags,’ the IRS does not care where taxpayers live. Federal law is federal law. Only the states care, and residency is based on when a person moves in and out of a state.”
To read the articles, please click here.
To speak with and/or set up an interview with Michael Karu, please contact Amy Delman, Amy Delman Public Relations, LLC, 201.563.4614 or amydelmanpr ( @ ) verizon dot net dot
Michael H. Karu, CPA/CFF, is a senior member of Levine, Jacobs & Company, LLC, a Livingston-based accounting and consulting firm. He is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. Additionally, he is a Certified Divorce Mediator and is Certified in Financial Forensics.
Karu received his B.S. degree in Business Administration from The Ohio State University and holds professional memberships in the American Institute of Certified Public Accountants, the AICPA Tax Division and the AICPA Business Valuation, Forensics and Litigation Services Section, as well as the NJ State Society of CPAs. Karu is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.
Levine, Jacobs & Company, L.L.C. maintains memberships in the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. The firm prides itself on its teamwork abilities where “every account receives the talent and expertise of the whole firm.”
Media Contact:
Amy Delman
Amy Delman Public Relations, LLC
201.563.4614
amydelmanpr ( @ ) verizon dot net
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