2007-05-31 08:24:21 · 5 answers · asked by Paula S 1 in Business & Finance ➔ Personal Finance
Yes, you can remove such funds, but not without a substantial tax penalty for early withdrawal. (Assuming you have not reached the legal age for unpenalized withdrawals. You willl be taxed on this removal at your regular income tax rate for the year in which you removed the funds, plus a 10% penalty for early withdrawal.
2007-05-31 08:29:00 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Yes. You will pay a penalty, however, equal to 10% of the withdrawal, and you will be taxed on the withdrawal during the year of withdrawal if the funds were put into the account on a pre-tax basis (such as pre-tax witholdings from your paycheck). Withdrawing from your 401k really should just be a last resort.
Some employers do offer a 401k LOAN, where you will pay back the amount on a fixed schedule through after-tax paycheck deductions. There is usually an interest rate involved, but you are essentially paying yourself.
2007-05-31 08:47:44 · answer #2 · answered by bradfunk 1 · 0⤊ 0⤋
Not unless you're using it for downpayment on a house. You have to pay it back within 5 years and pay interest.
2007-05-31 08:30:03 · answer #3 · answered by Bogart 3 · 0⤊ 0⤋
Yes, but there is a huge tax hit. I wouldn't recommend it unless there are no other avaliable alternatives or you don't plan on living to retirement age though.
2007-05-31 08:34:46 · answer #4 · answered by Blicka 4 · 0⤊ 0⤋
become disabled. no tax penalty. so if u want to take ur money our w/o any penalty..stand in front of a car.
2007-05-31 09:53:30 · answer #5 · answered by seafood10 3 · 0⤊ 0⤋