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View Full Version : Early 401k Withdrawal.


mellow11
Jan 17, 2011, 01:43 PM
I withdrew my 401k in 2010, now I have to do my taxes , since my wife runs a childcare at home , How can I get refund showing expenses?

ebaines
Jan 17, 2011, 02:02 PM
If your wife is running a business you should be filing a schedule C to document her income and expenses. I can't tell you whether you'll get a refund or not - don't forget that if you are under age 59-1/2 you have to pay a 10% early withdrawal penalty on the 401(k) withdrawal in addition to regular income taxes.

AtlantaTaxExpert
Jan 17, 2011, 04:01 PM
AND that 10% Early Withdrawal Penalty CANNOT be reduced by credits or deductions, since it is a punitive tax designed to discourage early withdrawals.