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    401kDilemma's Avatar
    401kDilemma Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 26, 2008, 01:00 PM
    401k Early withdrawal
    What are the tax consequences for early withdrawal of a 401k that has less than you have contributed? I have contributed 45k and is now worth 37k. I feel I better invest the money in real estate at this point and deal with the tax issue when it comes due, but not sure if I have the ability to lessen the tax liability because it is underperforming.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Feb 26, 2008, 01:11 PM
    Since all your contributions are PRETAX there is no loss. Whatever you pull out is added to your taxable income. Plus the 10% penalty.

    Doesn't your plan offer different investment options?
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