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View Full Version : I am 63 yrs old,want to take $ from my 401k, will I be taxed or penalized?


BARBI11
Mar 7, 2010, 10:37 AM
I am 63 and want to take some money from my 401k for a down payment on a new car. Will I be taxed or penalized for that withdrawal?

ebaines
Mar 8, 2010, 07:10 AM
Yes you will be taxed (the withdrawal is considered ordinary income to you), but no, there is no penalty since you are over age 59-1/2. Depending where you live you may have state/local income tax to pay on it as well as federal income tax.