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    krissy74's Avatar
    krissy74 Posts: 6, Reputation: 1
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    #1

    Jan 9, 2007, 04:50 PM
    Withdrawing my 401k--how do I go about paing penalties?
    Hello,
    I am in the process of pulling my 401k. I need the money to pay off medical bills from before I had medical insurance. I have to pay 10% penalty plus Federal and state taxes which add up to like 42%.. Anyway, I have no choice at this time... My question is: what is the best way to go about paying? Should I take care of all taxes on my own? Or should I have the investment company I have my 401k plan with take care of all that? Also.. I am taking this out in 2007... This will be applied to next year right??
    hobokenman's Avatar
    hobokenman Posts: 3, Reputation: 1
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    #2

    Jan 9, 2007, 09:08 PM
    I would seriously advise using a credit card to pay the medical bills. Its not worth giving away 42% of your 401k to get out that money. Invariably, you'll regret that down the line.
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