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-   -   401k Early withdrawal (https://www.askmehelpdesk.com/showthread.php?t=188549)

  • Feb 26, 2008, 01:00 PM
    401kDilemma
    401k Early withdrawal
    What are the tax consequences for early withdrawal of a 401k that has less than you have contributed? I have contributed 45k and is now worth 37k. I feel I better invest the money in real estate at this point and deal with the tax issue when it comes due, but not sure if I have the ability to lessen the tax liability because it is underperforming.
  • Feb 26, 2008, 01:11 PM
    ScottGem
    Since all your contributions are PRETAX there is no loss. Whatever you pull out is added to your taxable income. Plus the 10% penalty.

    Doesn't your plan offer different investment options?

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