Im thinking about leaving my job and dont want to roll it over. I need the money kinda bad.
2007-03-24 06:55:57 · 7 answers · asked by fro1736 1 in Business & Finance ➔ Personal Finance
!0% off the top Penalty, and Tax on the remainer at the end of year....Considered Income.
2007-03-24 06:59:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You'll pay taxes on the withdrawal equal to your tax bracket in the year you make the withdrawal.
PLUS, a 10% penalty if you are under 591/2.
Expect to lose an additional 20% of your withdrawal from the 401k by "cashing it out". Your employer will automatically withold the 20% unless you "roll it over" to another financial insitution first.
2007-03-24 07:01:35 · answer #2 · answered by ? 5 · 1⤊ 0⤋
Simple Answer is 10% penalty on your withdrawal.
Also it will be treated as your regular income and you have to pay tax on it.
Cheers,
http://www.theusefulinfo.com/finance/401k.html
p.s.: If you are able put that money back in Rollover account in 60 days then you do not have pay tax & penalty.
2007-03-25 06:45:40 · answer #3 · answered by www.TheUseFulInfo.com 2 · 1⤊ 0⤋
The link that I will provide says 10%
2007-03-24 07:11:52 · answer #4 · answered by kimthornton1231 3 · 0⤊ 0⤋
You will have to pay tax on all of that money upon withdrawal instead of it accumulating tax free. You probably want to avoid that!
2007-03-24 06:59:32 · answer #5 · answered by regrunion 3 · 0⤊ 0⤋
BIG! I think it is 40% off the top, including taxes.
2007-03-24 06:59:04 · answer #6 · answered by St♥rmy Skye 6 · 0⤊ 0⤋
ten percent
2007-03-24 07:03:07 · answer #7 · answered by Sufi 7 · 0⤊ 0⤋