I am wondering if you can tell me what the total penalty and taxes will be if I withdraw $8500. From my 401k? I am recently divorced and really need money to replace my car (unfortunatly I can't afford a car payment right now). Thanks

It depends on what your tax bracket is, for both the Feds and state. Add up the following: Fed tax bracket + state tax bracket + 10%.

Have you considered taking a loan against your 401(k), as opposed to an outright withdrawal? That way you can pay yourself back over time, and avoid the penalties.

Thanks for the reply. How do I find my tax bracket? I am totally inept when it comes to taxes!

It depends on your Adjusted Gross Income (taxable income less exemptons and deductions), and your filing status. For federal taxes it could be anywhere from 10% to 35%. If you know your Adjusted Gross Income from your 2006 tax return, you can find your tax bracket here: Reference Room. Since you didn't say what state you live in I can't help you with that.

Ebaines has covered all pertinent issues.