Does anybody know what ill get back after fed tax withholding and penalties. I live in LA. this is 403 b.
2006-12-28 21:42:11 · 2 answers · asked by keni5 1 in Business & Finance ➔ Careers & Employment
I havent been saving that long. Its retirement funds for a couple years.
2006-12-28 21:53:11 · update #1
So you want to withdraw your $8642.00 from your 403B plan? If that's the same as a 401K, you will lose 10% penalties if you are under 59-1/2 years of age so that's $864.20 off the top. Then you will also have to pay the IRS a withholding of 20% which will be adjusted at tax time. 30% of $8642.00 is $2592.60 so you'll end up with $6049.40. You may end up paying more than 20% on that money when combined with your income. You won't have a dime at retirement. Make sure that you truly need that money more now than you will in your future. That $6,000 will help with expenses for a short time but you are better off concentrating on a new job and leaving that money where it is or transferring to another plan. Are you willing to give up more than $2500 to the government so you can quit your job??? I've done it. Now I have nothing for retirement in 15 years where I could have built up some interest. It's your decision but think twice before you do it.
Would you take out a credit card with a 30% interest rate???
2006-12-28 21:46:21 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you are cashing out full tax rates will apply. So if possible only take out what you need, and transfer the rest into an IRA
2006-12-28 21:58:44 · answer #2 · answered by Jon H 5 · 0⤊ 0⤋