It said 10 % penalty and 20 % taxes AND state or local taxes.. So i live in FL. What would be my damage. And how long would i have to wait to get the money?
2006-08-01 12:11:23 · 2 answers · asked by Vik . 2 in Business & Finance ➔ Investing
I believe FL having no state tax. So your federal tax bracket with 10% IRS penalty rule.Please Rover to IRA, do not let uncle Same take 30% of your money. That's call robbing a bank without a gun
2006-08-01 18:55:48 · answer #1 · answered by Hoa N 6 · 0⤊ 0⤋
There is a 10% penalty to the IRS. In addition you pay income tax on the full withdraw at 'ordinary income' rates. Since it is added to other income, the rate can't be determined without knowing your full tax situation. The processing time depends who operates your 401(k). Do you have the option of borrowing against your 401(k). I normally would recommend against that, but its generally better than a withdraw.
2006-08-01 19:31:03 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋