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

Answer by  tamarawilhite (17883)

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.

Answer by  TBG (14)

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.

Answer by  Jon65 (787)

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