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Early withdrawal penalties on 401K

Asked Nov 6, 2007, 07:20 AM — 1 Answer
I quit my and started a new job with the state of NC. I have 48K in a 401K and would like to withdrawal 15K. Is there a way that I can do this and avoid the penalties?

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ebaines Posts: 10,043, Reputation: 5534
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Nov 6, 2007, 08:32 AM
No - assuming you are under 59-1/2 years of age, you can not withdraw without penalties. If you withdraw $15K you will have to pay $1,500 in penalties plus both federal and state income tax on the $15K. Assuming 20% federal rate and a 7% NC rate, that means you would have about $9450 left over.

If you've just started a new job, you should be saving for retirement, not spending away your future.
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