I have loss my job by a lay off but found a new job and want to cash out my 401K I have $52,842.00 in there how much taxes do I have to pay ? And out of that amount what will I clear ?

Larry, a tax expert will be along shortly to answer. I was just wondering if you've considered rolling over your 401k? Since your back to work a rollover might be the best bet. Good luck

If you cash out your 401(k) you will have to pay:

(a) Federal income tax on the $52,842 of income. The amount you owe is dependent on your tax bracket, so it's impossible to guess, but keep in mind that this amount is added to your ordinary income so it may push you into a higher tax bracket than you are used to. It may also cause you to lose some of the deductions and credits that you may otherwise be eligible for. But for grins lets just guess that 25% goes to federal income tax.

(b) State/local income taxes - which depend on the state and municipaility you live in. Let's guess about 5% for that.

(c) Early withdrawal penalty, which is 10% of the withdrawal.

Add it up and you get about 40%going to taxes and penalty. Which leaves 60% for you. So you will clear about $30K. However, be aware that the administrator will withhold only 20%, so when you get the check don't spend it all, because you're going to owe more than that.

A agree with parttime - why cash out the 401(k) since you have found another job? You'd be much better off either leaving it or doing a direct rollover from your old company's plan to an IRA.