I believe it's 10% plus the whole withdrawal is treated as regular taxable income, at your current marginal rate. If your entire withdraw was within the 15% bracket, for example, the total hit would be 25%.
10% penalty and 28% tax. Tax can either be paid off the bat or you can wait until end of year and put it on tax form as income.
If I had a 401K I would cash it ALL in now, no matter what the penalty, and buy as much low cost real estate (rental units especially) as you could get your hands on
Yes it is 20% Federal & there is a 10% penalty plus State Tax. I just recently cashed mines out even though it is not much. I got laid off last October 30, now my unemployment check is like $200 less than what I was earning when I was working. I do need the money and I regret opening a 401K when I should have instead saved it so I can have access to my money without penalties.
This is what I was given remember it is only estimate & I did took out a loan about 2 years ago and was being deducted from my paycheck so here is what I was notify of:
Total Gross Distribution $9,467.93
Cash amount to you $5,622.36
Loan distribution $1,762.62
State tax $189.36
Federal tax $1,893.59
Total Estimated Net Distribution $5,622.36