Facing non-medical financial hardships, my employer-sponsored 401(a) retirement plan is looking like my only way out. I am leaving my job next summer. When all is said and done, less instant and eventual taxes and penalties, what can i expect my net refund to be? Percentage-wise, how much of my pension amount will be taken via taxes and penalties? Thanks for your help!
USA 401(a) Early Refund Penalities
- Thread starter ericmday
- Start date
your statement is confusing... you can leave your money in the 401k and pay no taxes. If you withdraw money from the account, you incur a 10% penalty and pay tax on the amount... either capital gains or the tax for your tax bracket depending on your investment.
1. you could roll it over to another retirement account within 60 days with no penalty
2. you will prob pay a 10% penalty, and
https://www.irs.gov/uac/newsroom/tax-rules-on-early-withdrawals-from-retirement-plans
3. it will prob be taxed as earned income, so it depends on your filing status and tax bracket...
http://taxfoundation.org/article/2016-tax-brackets
2. you will prob pay a 10% penalty, and
https://www.irs.gov/uac/newsroom/tax-rules-on-early-withdrawals-from-retirement-plans
3. it will prob be taxed as earned income, so it depends on your filing status and tax bracket...
http://taxfoundation.org/article/2016-tax-brackets