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    marge02's Avatar
    marge02 Posts: 2, Reputation: 1
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    #1

    Jun 14, 2008, 09:38 PM
    Withdraw all my money fron 401k
    I am 56 yrs old I have about $14000 in my 401k at my present employer, I donot intend to quit but I need my money. My question is how much will I loose?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jun 23, 2008, 01:57 PM
    If your employer allows an in-service withdrawals (and many don't, except for specific IRS-mandated hardship causes) you would pay ordinary income tax on the distribution - federal and state (if you live in a state with an income tax) plus 10% for an early-withdrawal penalty. So you can figure on losing about 1/3 of it, maybe more depending on your situation. You would be better off taking a loan, if your plan allows it - in this case there is no penalty or taxes due, just interest which in effect you pay to yourself.
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