how much is the penalty and tax i need to pay if i withdraw my $43,000 401k?

Answer 1

tax will be at your regular tax rate, which I don't know because you didn't indicate it, but if you are under 59 1/2 there is an additional 10% tax penalty to be paid, which would be $4,300 if you were under that age. There are certain exceptions to the rule though.

Answer 2

Your 401k custodian will withhold 20% of the gross proceeds, which is $8,600, and send that to the IRS. That will leave you with a check for $34,400. You do not mention whether or not you're rolling over into another tax deferred account, 401(k) or IRA account.

Assuming that you're single with NO other income, you'll pay tax on the $43,000 gross income minus your deductions

Once the tax is computed, the 10% penalty, $4,300, is tacked on. If the total is less than $8,600, you will receive a refund; Otherwise, you will pay some tax.

Answer 3

The penalty from the company is between 10 - 15%. Then usually you can expect to pay in income tax another 30-40% for an aproximate loss of 40% to 50%...it is much better to just roll your 401k over into an IRA.

Answer 4

The distribution is taxed as ordinary income. The exact rate will depend upon your other income in the year of the distribution. If you're under age 59 1/2 there will be an additional 10% penalty tax levied.

Answer 5

Count the $43,000 as regular income, and pay regular income tax on it.

Then send the IRS an additional $4,300 "penalty" for not waiting until retirement.

Answer 6

If you are under age 59-1/2, the penalty would bed $4300, or 10%. The tax will depend on your other income, what bracket you are in, but would probably be 25% or more.

Answer 7

are you setting down -- first check is for 4,300 that is the early withdrawn fee -- than see just what tax bracket you will be in and figure out the tax on the 43,000 plus what you made thus far. i believe you will think seriously about someother option.

Answer 8

penalty is 10% I believe.

tax is up to 40%.... so taking the money out is like getting a loan at 40% interest... not a good move..

I took mine out 4 yrs ago when I was sick and not working, and I regret it to this day. Unless if for a life threatening situation, i'd think twice about it.