[F]
How severe would penalty be for closing out 401k early? 38 years old...
ebaines
Apr 14, 2009, 11:57 AM
You would pay income tax on the distribution (federal as well as state/locality, depending on where you live) and also an extra 10% early withdrawal penalty. Depending on your circumstance, this could mean you'd be left over with only about 55% of the withdrawal.