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    tropicalparadis's Avatar
    tropicalparadis Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 6, 2008, 04:55 AM
    401K Penalty
    Hello, My husbands office is imposing a mandatory across the board salary reduction of 20% on a 150K salary which is HUGE.. if he leaves his employer , can he withdraw his 401K? I know there will be a 10% penalty, how can I avoid paying 28% tax on the money if we need it?
    Thank you
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Aug 6, 2008, 07:06 AM
    You can't. If he takes a distribution youy will lose close to half the value in the account between taxes and penalties.
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