Breckin
May 10, 2007, 09:26 PM
Can you tell me what the penalties are for early withdraw from 401k on the state and federal levels
AtlantaTaxExpert
May 11, 2007, 01:07 PM
You will pay normal taxes at your marginal tax rate (that the tax rate on the last dollar you earn in the year) PLUS a 10% Earky Withdrawal Penalty.
The total tax bll can approach 50% of the money distributed. Do NOT do it if it can be avoided.