Can losses on my 401K affect my taxes in anyway?

Best Answer

twitham answered a question in Tax Issues.
122 points

twitham answered 8 months ago …

Yes - in that you will have less money in your 401K to withdraw, and thus have to pay less taxes. The point is that you pay taxes on money you withdraw, what ever your gains or losses within the 401K.

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Answers

fuzball answered a question in Tax Issues.
265 points

fuzball answered 8 months ago …

The only way taxes on a 401K come into play is when you withdraw funds which then become taxable as ordinary income. All transactions within the 401K, except for those withdrawals, are non taxable events, Profits or losses will either increase or decrease it's value and do not have any taxable concerns for you as long as they remain in the plan.

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