2007-03-08 15:44:51 · 5 answers · asked by enias11 1 in Business & Finance ➔ Personal Finance
You will have to pay federal income tax on the entire amount that was contributed through "before tax" contributions and a 10% tax penalty on top of that on the full amount. In addition, any state taxes that you pay will also be due.
2007-03-08 15:49:07 · answer #1 · answered by NJGuy 5 · 0⤊ 0⤋
The penalties begin with being vested. If you are not vested you can only get your money back. If you are partially vested you will get your money back, plus whatever percentage you are vested. The second part to this is that you never paid any taxes on this money, and now that you want it back you will be hit heavily. If you are withdrawing money for a home, good example, you will have to put the money back in, or else face these same penalties. Hope this helped.
2007-03-08 23:49:31 · answer #2 · answered by Kevin M 3 · 0⤊ 0⤋
The company administering the 401K will withhold up to 28% for federal tax, plus whatever your state tax rate is. When you figure what you actually owe in taxes on it next year, add another 10% for the penalty for federal taxes, and whatever your state penalty is.
2007-03-08 23:50:01 · answer #3 · answered by Brian G 6 · 0⤊ 0⤋
if it's an early withdrawal
you pay income tax
AND a 10% penalty
ooooooooooooo
better rethink!
2007-03-08 23:47:23 · answer #4 · answered by tom4bucs 7 · 0⤊ 0⤋
Your hand and your firstborn..also what the Church requires.
2007-03-08 23:47:17 · answer #5 · answered by Diana 4 · 1⤊ 2⤋