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-   -   401k Early withdraw hardship (https://www.askmehelpdesk.com/showthread.php?t=59719)

  • Feb 3, 2007, 08:31 AM
    gavhan
    401k Early withdraw hardship
    I had to take 17k for a hardship withdraw on my 401k. Will I have to pay federal taxes on this?
  • Feb 3, 2007, 10:34 AM
    AtlantaTaxExpert
    Yes, you will be subject to normal state and federal income taxes on the $17,000.

    Further, unless your distribution meet one of the exceptions, you will also have to pay a 10% Early Withdrawal Penalty. The 10% penalty must be paid even if all your deductions would otherwise completely offet your other income. It is a rather punitive tax.

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