Ask Me Help Desk

Ask Me Help Desk (
-   Retirement (
-   -   Early withdrawal penalties on 401K (

  • Nov 6, 2007, 08:20 AM
    Early withdrawl penalties on 401K
    I quit my and started a new job with the state of NC. I have 48K in a 401K and would like to withdrawl 15K. Is there a way that I can do this and avoid the penalties?
  • Nov 6, 2007, 09:32 AM
    No - assuming you are under 59-1/2 years of age, you can not withdraw without penalties. If you withdraw $15K you will have to pay $1,500 in penalties plus both federal and state income tax on the $15K. Assuming 20% federal rate and a 7% NC rate, that means you would have about $9450 left over.

    If you've just started a new job, you should be saving for retirement, not spending away your future.

  • All times are GMT -7. The time now is 07:24 AM.