I was in a car accident last march and have been off work since. I received a letter stating I am terminated because of being off more than a year. I want to know in Kentucky what taxes and penalties I have to pay to get my 401k out if any :p

You will pay a 10% Early Withdrwal Penalty ON TOP of whatever normal taxes you would pay to the IRS and Kentucky. It could approacj 50% depending on how much you take.

Honestly I don't know for sure, but we looked into that a few years back and with all the penalties; they were going to charge almost half. Taxes and Fees will suck you dry! Only get it out if it is your ONLY option! I think they should not be able to charge all the fees and fines, but they won't listen to me;)

Understand that 401K and IRA are meant for RETIREMENT. The taxes and early withdrawal fee is meant to serve as a inhiobiting factr to prevent you from accessing the money before your retirement age.

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Originally Posted by missynewton

I was in a car accident last march and have been off of work since. I received a letter stating I am terminated because of being off more than a year. I want to know in Kentucky what taxes and penalties I have to pay to get my 401k out if any :p

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Your best option is to roll over the distribution into an IRA. However, you may qualify for avoiding the 10% penalty. Check with the plan administrator before a distribution is made.

Scott's advice is very good. Follow it!