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REDDIT

I just got laid off. How much of my investments I can I pull out without being tax?

A
Mar 12, 2025 · 10:24

I've been buying the stock market dip a little too heavily, and then I just got laid off out of nowhere. I wanted to take 2 years off between jobs, and I usually have a higher savings account for this reason. But now I'm at only $25K.

So I'm trying to figure out how much of my long term gains that I can liquidate without paying taxes.

I make $141K/yr, which is $2,711.54 per weekly paycheck - $460.96 deducted to 401K = $2250.58 taxable. Correct?

I had 9 paychecks before the announcement, which total my taxable income to $20,255.22.

Since the announcement, I'm putting the rest of my paychecks directly into 401K. Which is what I *should* be doing, correct?

Then I'm expecting \~$10,500 severance, which I don't think that I can contribute to 401K.

I also invested $7000 into Roth IRA this year. But that doesn't effect anything until *after* I pull out, right?

I've read that I won't be taxed in LTG this year, if I made less than $48,350 total. Correct?

So I *think* that it'll be able to pull out tax free, if my LTG is less than:

$48,350 (limit) - $20,255.22 (salary - 401K) - $10,500 (severance) + 401K \~= $17,594.78


Do I understand this correctly?