2006-10-26 07:07:44 · 5 answers · asked by GanRtease 1 in Business & Finance ➔ Personal Finance
the above answers missed the point.
you pay a 10% penalty fee plus!! your going rate on income tax not counting state tax fees.
Bad deal don't pull it out unless you like losing your money. You'll lose up to 40% of your money.
2006-10-26 08:13:59 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As I understand it, there is a 10% penalty for any early withdrawals before age 59 and a half. There are some exceptions such as using the money for college tuition and to pay for medical bills for a serious illness. These are a couple of examples, there may be more. Oh yes, you avoid the penalty for a first time home purchase.
2006-10-26 07:25:46 · answer #2 · answered by William J 1 · 1⤊ 0⤋
There is a 10% federal tax penalty if you withdraw the money without rolling it over within 2 months if you are under 59 1/2.
2006-10-26 07:11:43 · answer #3 · answered by DAN H 2 · 1⤊ 0⤋
most definitely there will be one. it all depends on the terms under which the 401k is administered as to how much the penalty is. typically the penalty is equivalent to 1 full years worth of interest. there are exceptions to this though. the main ones are to buy a home, and medical expenses. depending on who is the administrator college tuition may also qualify for the the penalty exemption.
2006-10-26 07:11:29 · answer #4 · answered by newmichelle1959 3 · 0⤊ 1⤋
10% unless you can claim hardship
2006-10-26 07:09:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋