Ask Experts Questions for FREE Help !
Ask
    GRAYFOX06's Avatar
    GRAYFOX06 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 4, 2008, 03:01 PM
    What Is The Penalty For One Who Withdraws 401k Funds Before Age 591/2
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 4, 2008, 07:36 PM
    First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.

    Early withdrawal includes a 10% penalty plus the amount of the withdrawal is added to your taxable income for the year. Taking an early withdrawal is a very last resort. See if your plan allows for loans against the balance.
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!

401K early withdrawal penalty [ 6 Answers ]

When my husband and I bought our new home in 2005, we both withdrew money from our 401Ks. I took $5,693 of which they took 20% in federal income tax withheld and he took $8,000 of which they took 10% in federal income tax withheld. They are now coming back to me and saying we both owe the 10%...

Penalty for early withdrawal of 401K [ 1 Answers ]

I was laid off my current job after 7 years. I am 51 years old. How much will I be penalized for withdrawing my 401K?:confused:

Exemption for Early Withdrawal from 401k Penalty [ 1 Answers ]

As I read the IRS publication 575, there is an exemption to the 10% early withdrawal penalty that applies if you "separate from your job in the year you turn 55 or later". It looks like a fairly straight-forward statement, but I see a lot of discrepancy on various internet sites and have even had...

401K early withdrawal penalty [ 1 Answers ]

This may sound like a stupid question, but, please understand that I am an artist -- not a money person. If you take an early withdrawal from a 401K plan, pay the 20% state and federal tax before receiving the disbursement, how do you claim all this on the tax form? Can you use the EZ forms or do...

401k early withdrawal and 10% penalty [ 2 Answers ]

In regard to an early 401k withdrawal, can someone advise if the 10% penalty is calculated on the amount AFTER the 20% withholding, or is it on the amount of the original withdraw? (e.g. If you withdraw $10,000 from your 401k early, and the company withholds 20%=$2000; are you then required to pay...

View more questions Search