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    palmtree643's Avatar
    palmtree643 Posts: 1, Reputation: 1
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    #1

    Sep 30, 2009, 02:16 PM
    401K withdraw
    I have not worked for the last 3 years so I am not contributing to my 401K from my last employer. There are some credit balances I would like to pay off with money from this account. Is it possible to withdraw? I will be 60 in 3 weeks.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 1, 2009, 07:23 AM

    Yes, you can certainly make a withdrawal - . You can request a withdrawal directly from the 401(k) plan administrator. They will automatically withhold 20% for federal income tax purposes - keep in mind that this withdrawal is taxable, and so whether the 20% is appropriate or not depends on your gross income and filing status. Also, depending on what state you live in you may owe state income tax on it as well. You will not have an early withdrawal penalty, since you reached age 59-1/2 in 2009.
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