Hi;
My fiancé recently changed jobs and instead of rolling over his 401k he withdrew all of it, on the check stub they took out federal taxes, we are clueless on what kind of penalty he will have to pay, please help,
Thanks

To preserve the tax-deferred status of retirement savings, the funds must be deposited in the IRA within 60 days of withdrawal from an employer’s plan. To avoid potential penalties and a 20% federal income tax withholding from your former employer, you should arrange for a direct, institution-to-institution transfer. Taxes will depend on how much income is declared for that year.

Newsletter DTD & Associates Inc. HBW "Helping Build Wealth" - IRA Rollover : Article: IRA Rollover

Pete