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    georgia on my mind's Avatar
    georgia on my mind Posts: 1, Reputation: 1
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    #1

    Mar 16, 2007, 10:06 AM
    Non qualified distribution of retirement account
    I live in Georgia and might need to take an early withdrawal on my retirement account. Am I correct when I figure that it will be 32% since I will pay a mandatory 20% federal income tax withholding plus 10% early withdrawal fee plus 2% Georgia state tax withholding? Can this be right?!
    Thanks,
    Georgia on my mind
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Mar 16, 2007, 10:40 AM
    Have you considered merely taking a loan out againt it ?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Mar 19, 2007, 11:01 AM
    Yes, 32% is about right, but may be somewhat low. The actual tax can approach 50%.

    The loan option that Fr Chuck recommends seems to make more sense to me!
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