when do you pay taxes on 403b withdrawal
Taxes on Withdrawals. When you withdraw funds from your 403(b) account, you will owe income tax on the amount you receive. You cannot withdraw funds from a 403(b) account until you reach age 59 1/2 or stop working.f you withdraw funds early, you will owe a 10 percent penalty in addition to income tax. At age 70 1/2, you must take a minimum required distribution. If you fail to do so, you will owe a 50 percent excise tax on the difference between your required distribution and the amount you actually took.