My wife will not listen to me! She feels that we need the money from a previous employers 401K plan to help with paying our bills since she doesn't make much money anymore. She only has about $8,000.00 in there and according to the way I see it, she will need to have 20% fed. Tax withheld, and 8% Oregon State tax withheld, plus the 10% early withdrawl penalty. According to my figures that leaves about $5000.00 net for her, or 38% deducted. Am I correct? or is it 28% total? (Tax + Penalty)