What charges are there for early withdrawl of 401k withdrawk?

In general, if you withdraw money from a traditional individual retirement account such as a 401(k) or other qualified retirement plan before you turn age 59 1/2, you are subject to penalty of 10%. The taxable amount is also included in your taxable income. This 10%tax is in addition to regular income taxes. Please note that the associated penalties and taxes are applied at the time of your withdrawal transaction, so even if you plan to gift the proceeds later on, you will still be liable for the

Stacey Poole
SP Payroll & Tax Services