2006-12-06 00:08:20 · 5 answers · asked by time4mel 1 in Business & Finance ➔ Taxes ➔ United States
It depends on your other income as to what bracket you would end up in but here are some starting points:
25% Federal Income Tax (approximate guess at bracket)
10% Federal Penalty
??% State Income Tax (If Applicable - Varies by State)
If you can avoid it, don't do it. It will cost too much in taxes.
2006-12-06 00:53:00 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
I understand that you are married. Early withdrawal(before 59.5 years) is included in your income. Therefore, it matters what other components are in your income. Let's say your other income is $50K. Than your tax bracket is 25%. So your tax on $50K is $12.5K plus you pay 10% on $50K penalty which is another $5K(there are some rear exceptions for the penalty) This is the worst way to borrow money, unless you return it back within 60 days which will not be considered as early withdrawals
2006-12-06 09:28:29 · answer #2 · answered by alikmal 2 · 0⤊ 0⤋
Approximately 20% plus another 10% for the 1040 IRS. Check with a local CPA for your State.
2006-12-06 08:14:46 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Why would you want to do a stupid thing like that!!!! Plan to lose about half between 10% penalty, state and federal taxes.
2006-12-06 11:51:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
ask a CPA
2006-12-06 08:15:49 · answer #5 · answered by ? 7 · 0⤊ 0⤋