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    trendy's Avatar
    trendy Posts: 1, Reputation: 1
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    #1

    May 2, 2006, 11:05 AM
    About Early withdrawel on 401k
    What is the penality for early withdrawel for first time home buyers, I was penalised 30% 20 for early & 10% for taxes I this correct
    fredg's Avatar
    fredg Posts: 4,926, Reputation: 674
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    #2

    May 3, 2006, 04:26 AM
    Hi, trendy,
    Yes, you are correct. The penalty for early withdrawel is the same; regardless of the reason you are withdrawing it.
    Actually, the 20% is for Federal Taxes, not for Early withdrawel.
    The 10% is for Early withdrawel.
    It's the same though, total of 30%.
    If your state has a State Income Tax, you will have to pay State taxes as well.
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