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What are the laws and penalties associated with early with drawl of a 401K account?

I want to understand the negatives to withdrawing money from my 401k.

asked by Taran (709)

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Tags:  finance  investing  legal

answers

You will have to pay income taxes as well as a 10% penalty. If your income tax rate is 25%, you will have to pay 35% to the government.

5 votes

Depending on your age, when you make a necessary withdrawal from savings in your 401k retirement account, you may have to pay a 10% penalty on the amount that you withdraw. The penalty comes off the top, before the other taxes are taken off. 59 1/2 is the age limit.

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posted by TBG (9)
3 votes

Early distributions or withdrawals from 401K plans, before age 59 1/2, will be subject to a 10% penalty on total funds removed.

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posted by Jon65 (407)
2 votes

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