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View Full Version : Penalties for early withdrawal


lharbuck
Mar 26, 2007, 02:18 PM
What are the penalties and taxes for early withdrawl of a 401K?

AtlantaTaxExpert
Mar 30, 2007, 10:57 AM
Taxes (state and federal) are assess at your marginal tax rate (the tax rate you pay on the last dollar you earned in the year).

PLUS a 10% Early Withdrawal Penalty which CANNOT be mitigated (which means that you will pay the 10% even if all your expenses and deductions reduces your other income tax liabilities to zero).