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    saffy1234's Avatar
    saffy1234 Posts: 1, Reputation: 1
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    #1

    Jun 14, 2009, 02:54 PM
    401K Cash out
    My employment will be terminated soon after 25 years. I am 48 and plan to cash out my 401k. I have about $32000 in my account. Can anyone here tell me how much I should expect to walk away with after Taxes and penalties are applied ?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Jun 14, 2009, 03:03 PM

    Why would you do this? You are going to lose a significant portion. The plan will withhold 20% for federal tax. When you file your 2009 taxes, you will need to pay an additional 10%. Local taxes may also take their cut and your actual federal liability will depend on your total income for the year. You could wind up losing 40-50%. Really not a good idea.
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