So I withdrew from my 401k to be responsible and pay down some high interest debt.
Because I did this, some of my write offs phase out.
I now owe $700 federal $1600 state.
I went ahead and pretended I didn't do this by deleting out the withdraw. In this case I would get back $400 feds and owe state $1000.
So being responsible and paying down $6,000 @ 12.25% cost me $1,800 or two and a half years of interest.
What a joke. Where is the consumption tax or flat tax. I hate our system so much.