Ask Experts Questions for FREE Help !
Ask
    mrh's Avatar
    mrh Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 12, 2009, 11:33 AM
    401k withdrawl
    What charges are there for early withdrawl of 401k withdrawk?
    sptaxes's Avatar
    sptaxes Posts: 1, Reputation: 1
    New Member
    		  
    #2

    Jul 12, 2009, 01:37 PM
    In general, if you withdraw money from a traditional individual retirement account such as a 401(k) or other qualified retirement plan before you turn age 59 1/2, you are subject to penalty of 10%. The taxable amount is also included in your taxable income. This 10%tax is in addition to regular income taxes. Please note that the associated penalties and taxes are applied at the time of your withdrawal transaction, so even if you plan to gift the proceeds later on, you will still be liable for the

    Stacey Poole
    SP Payroll & Tax Services
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k withdrawal [ 2 Answers ]

My husband took out his 401k early because he no longer works there. We are trying to understand the rules for taxes. It seems that is you took out the early due to no longer employed, the 10% tax penalty is waved. There were taxes withheld on the 1099-r. is this correct or not Shannon

401k withdrawal after 59.5 [ 1 Answers ]

What is my tax liability if I withdraw from my 401k after 59.5 ?

401K withdrawal [ 1 Answers ]

My husband had his 401k accidentally mailed to our Georgia address. He was a legal resident of Tennessee at the time. I mailed the check to his TN address. No Georgia state taxes were taken out. He became a legal resident of TN on January 30th, 2006. Will he have to claim full, partial or none...

401k withdrawal [ 1 Answers ]

The Big Lots store I have been managing the past three years recently closed. I wish to withdrawl my 401k contributions and I was wondering if I will be charged a penalty since the company closed my store and offered no transfer.

401k withdrawal [ 4 Answers ]

I am recently divorced and have to withdraw from my 401K in order to make a down payment on a house. I am also in the military and will be deploying to Iraq shortly. Question: If I cash in the 401K when I am in a tax free status (Iraq), will I still be taxed the 20% or just pay the 10% penalty?

View more questions Search