I know I will get hit hard on the taxes for the early withdrawal, but do you know how much ? 20% .... 30%.....40% ? I'm still currently working full time, but need the money to pay off debt.
2007-11-24 03:22:30 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
ten% penalty.....plus regular incoime tax
2007-11-24 04:17:29 · answer #1 · answered by richard t 7 · 1⤊ 0⤋
The penalty for early withdrawal if you're under 59-1/2 is 10%. But you'll also pay federal income tax, at whatever your bracket is including the amount - could be another 15% or 25%, or even more if you have a high income without this.
You might or might not also owe state income taxes, depending on your state.
2007-11-24 11:28:48 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
There are going to be penalties. Check with the IRS website, and your savings institutions on fees and such. There may also be state taxes that you need to pay on the withdrawl as well. Start with your bank, and work up the food chain.
2007-11-24 11:41:31 · answer #3 · answered by Ramester 3 · 0⤊ 0⤋
This is a good question, of which you need to talk with someone who knows your financial situation, such as the one who did your taxes. Depending upon your age you may pay a penalty in addition to federal income taxes. Ask the trusted financial advisor in your area.
2007-11-24 11:29:57 · answer #4 · answered by arrowhead_mortgage 1 · 0⤊ 2⤋