I am 63 and want to take some money from my 401k for a down payment on a new car. Will I be taxed or penalized for that withdrawal?
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I am 63 and want to take some money from my 401k for a down payment on a new car. Will I be taxed or penalized for that withdrawal?
Yes you will be taxed (the withdrawal is considered ordinary income to you), but no, there is no penalty since you are over age 59-1/2. Depending where you live you may have state/local income tax to pay on it as well as federal income tax.
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