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    vika0300's Avatar
    vika0300 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 29, 2008, 07:21 PM
    Will I be penalized for an early 401K withdrawal?
    Hello,
    I have been previously employed for nearly a year by a customer service company, where I accumulated certain funds in their 401K plan.
    I have resigned there to become a teacher, which is what I foresee doing until retirement. My retirement plan there is PERA, not 401K.
    I am in dire financial need right now, and am considering withdrawing my 401K funds altogether. Can you tell me whether I will incur any penalties in this scenario, and if yes, what is the approximate percentage?
    Thank you.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 1, 2008, 12:12 PM
    If you withdraw those funds early, you will pay AT LEAST 25% in taxes, and maybe as much as 45%.

    BOTTOM LINE: Do NOT do it unless you absolutely have to.
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