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

    Mar 26, 2007, 02:18 PM
    Penalties for early withdrawl
    What are the penalties and taxes for early withdrawl of a 401K?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 30, 2007, 10:57 AM
    Taxes (state and federal) are assess at your marginal tax rate (the tax rate you pay on the last dollar you earned in the year).

    PLUS a 10% Early Withdrawal Penalty which CANNOT be mitigated (which means that you will pay the 10% even if all your expenses and deductions reduces your other income tax liabilities to zero).
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