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To: kristinn

I’ll be cutting back on my 401K (or maybe eliminate) contributions.

As I see it, our 401K’s will be the likely next target in the coming year(s). What is the penalty of early withdrawal of the entire 401K?

I might as well get something then nothing later on.


9 posted on 01/11/2013 8:44:19 AM PST by CapnJack
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To: CapnJack
What is the penalty of early withdrawal of the entire 401K?

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%.

19 posted on 01/11/2013 9:11:16 AM PST by kevkrom (If a wise man has an argument with a foolish man, the fool only rages or laughs...)
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