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    lisad's Avatar
    lisad Posts: 1, Reputation: 1
    New Member
     
    #1

    May 12, 2005, 01:13 PM
    Cashing out 401k
    I am moving to Australia from the US next year and wish to cash out my 401k. What penalties would I pay. I am not retirement age.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
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    #2

    May 13, 2005, 06:03 PM
    Lisad:

    You will pay income taxes (both state and federal) on any amount that you receive prior to the year you turn 59.5 years of age. Further, you will pay a punitive 10% early withdrawal penalty.

    How much money are we talking about?

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