I’m a bit confused why my dad had so much in fees withheld when he pulled some money out of his 401k. He is 67 and his 401k is through ADP. He wanted to withdraw 5k dollars. We did all the paper work correctly. When he received his check it was only $3,745 after taxes -around $989 for federal and $210 for state taxes.
It seems a bit odd given that he is retired and is much further along then 59-1/2 and based on 401k rules and lost around $1,300 just on taxes alone? Is this normal??
My dad's only income is Social Security. He has no other income and does not have a job. Please help me understand this.