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

    Mar 18, 2008, 12:46 PM
    Pentalies to withdraw from 401k early
    Thanks everyone in advance.

    I need some additional funds to pay down some debt $11/k. Not mortgage related. I have about $75/k in my current 401/k account. I am trying to figure out if I can take funds out of my 401k and if so what would be the pentalty for doing so. I live in MN

    Thanks

    Toni
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Mar 18, 2008, 12:48 PM
    Yes there are penalties. To get out $11K you would probably have to withdraw around $15K, between the 10% penalty and tax liability. That would be a lot more than you are paying in interest. See if you can take a loan out against the plan. At least them you will be paying yourself the interest.
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