"BMS" <mcfarland[at]yahoo.com> wrote in message
news:jyCfc.145726$w54.958381[at]attbi_s01...
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Nope, just young and broke. I'm gainfully employed, as is my wife, however
the exponential skyrocketing rate of property taxes, etc. is well outpacing
our current income. I need to buy some time, in another 2 years my pay rate
will increase substantially.

If you are 55+, ask if you are eligible for a 72t distribution.

"FranksPlace2" <franksplace2[at]email.com> wrote in message
news:d6bbed5b.0404151039.12b2f079[at]posting.google.com...
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There are some exceptions to the penalty, I believe. If you are over
a certain age (55 I think) and were layed off you can take withdrawals
from your 401k. Your 401k administrator will know.

Frank

"Just Me Again" <nospam[at]please.com> wrote in message news:<VqAec.1452$5L6.261[at]news01.roc.ny> ...

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If you are paying state income tax, then this would count as income for the
current tax year, as far as I know.

I think this info has been covered already, but also see...

http://www.money-talk.org/401k/401k-...hdrawals.shtml

"tragicallyhip" <tragicallyhip[at]your.service> wrote in message
news:40375061.606ABBA8[at]your.service...
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Because I happen to be in financial dire straights...

Thanks to everyone who has helped me so far. Another question, the 10%
early withdrawal fee goes to the US Govt, but does anyone know if NYS has
any similar fees or will I simply be increasing my gross income for the year
by the $15,000 as far as NYS taxes are concerned?

Assuming that you are in the 30% tax bracket, here is what this will
cost you:

Early withdrawl fee (10%): $1,500 paid to Uncle Sam
Taxes (30%) $4,500
TOTAL $6,000

My question is WHY? Unles you are in financial dire straights, why not
consider a rol-over into a roll-over IRA and avoid the taxes and fees?

Just Me Again wrote:
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He did forget to mention that in addition to the taxes, there MAY also be early
withdrawls penalties from your plan that is charged by the plan adminstrators
like mutual funds or Insurance Companies.

Check your plan to be sure.

"Just Me Again" <nospam[at]please.com> writes:

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[snip]

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To the US govt.

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No.

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Yes.

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No.

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Yes.

The full $15,000 will be added to your taxable income and
will make your taxes go up by whatever amount. Then on
top of that you'll have an *extra* tax of $15,000 x 10% = $1,500.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

Okay, here is my question, I hope someone here can help me out. I plan to
take a total cash withdrawal on my 401k of about $15K. I plan to have a
significant amount (perhaps 35-40%) withheld for my Federal and State income
taxes so that I'll be in good shape come tax time next year.

I am under the 59 1/2 minimum age limit and I understand there is a 10%
early withdrawal penalty. Can someone please explain the penalty to me?
Where does the money go? Is it a fee kept by the investment company or is
it an extra 10% that goes to the government? Does the 10% get taken off the
top of the $15,000 so that I am only getting taxed on the remaining $13,500
or what? Or, do I get taxed on the full $15K and then the 10% gets taken
out of whatever remains? TIA!