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    cholland40's Avatar
    cholland40 Posts: 1, Reputation: 1
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    #1

    Nov 5, 2007, 07:40 AM
    401K withdrawl
    I am wanting to possibly withdrawl my 401K, which is about 13,000. I know that there are penalties and taxes, but approxiamately how much would I receive? Is it taxed when withdrawn or are the taxes paid at income tax time?
    jessa1200's Avatar
    jessa1200 Posts: 13, Reputation: 1
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    #2

    Nov 5, 2007, 08:20 AM
    There will be a 20% initial amount taken from the 13,000 then when you file your tax retuens another 10% off the total 13,000 will be taken.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Nov 5, 2007, 08:50 AM
    The plan administrate will WITHHOLD 20% against your tax liability. This is the same as the withholding on your salary. Its an estimate and the actual amount will depend on your total income for the year. In addition you will have to pay an additional 10% early withdrawal penalty.

    So you would get a check for $10400, of which another $1300 will need to be set aside for the penalty. Then you will need to wait until you file your tax return to know how much else you will need to pay.
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