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

    May 10, 2007, 09:26 PM
    Early Withdraw
    Can you tell me what the penalties are for early withdraw from 401k on the state and federal levels
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 11, 2007, 01:07 PM
    You will pay normal taxes at your marginal tax rate (that the tax rate on the last dollar you earn in the year) PLUS a 10% Earky Withdrawal Penalty.

    The total tax bll can approach 50% of the money distributed. Do NOT do it if it can be avoided.
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