I have a 403(b) where my employer contributing. Can I withdraw any money? and who will affect my tax returned?

Answer 1

If you withdraw any money from your 403(b) - your contributions, your earnings, your employer's co-contributions and earnings - before the age of 59.5, then you will have to pay taxes on the money AS WELL AS an additional 10% tax penalty. If you withdraw the money after age 59.5, you will only pay taxes on the money, not the penalty. The withdraw will be treated as income and your tax will be assesed by this.

Most employers do not allow you to withdraw money from your 403(b) while employed, unless you have a hardship or become disabled. You can withdraw the money once you terminate employment, HOWEVER it is strongly recommended that you roll over your money to an IRA or your next employer instead. Money that is designated for retirement should remain in a tax-sheltered account (like a 403(b) or IRA) until you are in retirement.

Please consider the very serious consequences - both the taxes and the loss of potential earnings by not having the money invested - of withdrawing money in a retirement account before age 59.5

Answer 2

There are certain reasons that you can withdraw money with out a penalty but you will still have to pay tax on what you withdraw.