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    rthompson4's Avatar
    rthompson4 Posts: 1, Reputation: 1
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    #1

    Nov 6, 2007, 08:20 AM
    Early withdrawl penalties on 401K
    I quit my and started a new job with the state of NC. I have 48K in a 401K and would like to withdrawl 15K. Is there a way that I can do this and avoid the penalties?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Nov 6, 2007, 09:32 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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