Ask Experts Questions for FREE Help !
Ask
    mishuna's Avatar
    mishuna Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 23, 2008, 10:58 PM
    Early Withdrawl
    Hello. Will I get a tax penalty if I wanted to withdraw my 401K early to attend school?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Jul 24, 2008, 02:06 PM
    Yes, you will owe a 10% penalty for early withdrawal, plus income tax on the withdrawal (federal and state, if you live in a state with income tax).
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Aug 8, 2008, 05:04 AM
    Yes, withdrawal from 401(k) for qualified education expenses is subject from early withdrawal penalty. On your tax return, the additional tax is reported on
    Form 5329, Additional Taxes on Other Qualified Plans (including IRA's), and Other Tax-Favored Accounts, to report the penalty.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Early withdrawal [ 1 Answers ]

Hi all, I have limited knowledge on 401(k) and have ben reading many articles on the net. I need advice on how to withdraw the amount from my 401(k) with minimum tax/penalty. I am 30 years old. I worked in US from 2002 - 2006 and invested in 401k. My company also contributed and this grew to...

401 k early withdrawal [ 4 Answers ]

I was just let go of my job after 10 years of service. My question is can I cash in my 401 K in full without paying any penalties for early withdrawl? I do not plan on rolling it over. I am 57 years old. I do know that I will have to pay taxes on it as it will be added too my annual income. ...

Early withdrawal of 401K [ 3 Answers ]

Hi, I am an Indian, presently working for US company (subsidary of my Indian company). I will be in US for a year or so and then after return back to India. My employer gives the option to enroll for 401K plan. I want to know how can I withdraw the amount deposited in 401K plan. Also what...

IRA Early withdrawal [ 5 Answers ]

I have been making monthly IRA contributions over the past 4 years. Due to the income level I am not able to claim the contributions as a tax deduction. If I chose to withdrawl the money what would be the Tax Implication?

401K early withdrawal [ 4 Answers ]

I am in a 401K plan at my work and have been advised our company does not have it where you can get a loan. I need to make withdrawl funds from my 401k to handle some legal fees for a custody battle. Can I just and pay a penalty?

View more questions Search