Ask Experts Questions for FREE Help !
Ask
    hondo368's Avatar
    hondo368 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 23, 2007, 08:29 AM
    401k penalties and taxes
    If I decide not to roll over my 401k what will the tax % and penalty % be?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 25, 2007, 08:46 AM
    You will pay taxes (state and federal) at the tax rate you are paying on the LAST dolar you earn in 2007, PLUS a 10% Early Withdrawal Penalty.

    The total tax rate could hit 50%.

    BOTTOM LINE: DO NOT DO IT!!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k penalties [ 3 Answers ]

My husband is switching jobs and we do not know which route to take for his 401k He has 30,000.00 in 401k Do we roll it into a cd or ira ?If so can we withdrawl out of the cd or ira without paying federal or state income taxes on it or should we just withdraw it straight out of the 401k. We...

401k penalties [ 2 Answers ]

I recently left a temp job (2 years) and have about 25k in the 401k. While I know that the smart move is to roll the 401k into an IRA, I could actually use the money for some home expenses. I am in the 28% tax bracket. How much of the 25k could I expect to see after taxes/penalties?

401k penalties [ 4 Answers ]

I am wondering if you can tell me what the total penalty and taxes will be if I withdraw $8500. From my 401k? I am recently divorced and really need money to replace my car (unfortunatly I can't afford a car payment right now). Thanks

401k Taxes & Penalties [ 1 Answers ]

I am 56 years old and am close to losing my job. I have approximately $21,000 in a 401k plan with my current employer. Will I be excluded from the 10% penalty because of my age? Will the entire amount of my withdrawal be treated as income for the year I receive the withdrawal?

401k penalties [ 2 Answers ]

I just lost my job after 32 years... what is the best way to handle my 401k without losing everything to taxes/penalties... I will need to withdraw some money to pay off some debt... answer needed asap thanks

View more questions Search