puneet.maini[at]gmail.com wrote:

- quote -

The 10% early withdrawal penalty is applied to the amount of
the taxable distribution not the balance in the account. If
your account consists of employer matching contributions,
your own pre-tax contributions plus any earnings, then any
distribution is 100% taxable and subject to the 10% penalty
unless you attained age 59 1/2 or meet one of the
exceptions.

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<puneet.maini[at]gmail.com> wrote:

- quote -

Yes.

- quote -

Yes.

I'm assuming you are not a US citizen. Before making any
decisions, check to see if there are any tax treaty
provisions that would cut you a break on this.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

puneet.maini[at]gmail.com wrote:

- quote -

Federal and state income taxes + 10% (federal) of the amount
withdrawn. A mandatory 20% will be withheld at time of
distribution. This is a credit against your federal taxes,
and likely WILL NOT be enough to cover your tax liability
for the year.

- quote -

Yes.

- quote -

The total amount of the withdrawal, which includes your
contributions, employer match and earnings.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Do you know what is the exact amount on which 10% penalty is
imposed when you would withdraw money from your 401(k)
account? Is it on the absolute amount you have in your
401(k) account?

Some background info abt me:
I work here in US, but plan to move/settle back overseas
after like 3-4 years.

Basically I want to know:
Can I still make some money after the 10% penalty taking
into consideration the money contributed by employer?

Here's the calculation I have:

My Contribution (1 yr) : 3917.99
Employer Contribution (1 yr) : 1958.99

Total (1 yr) : 5876.99
Approx 5 % investment gain : 6170.84

Now, if I would like to withdraw this money what all
expenses would I have to be ready for

So, would the 10% penalty be on 6170.84?
On what amount would I have to pay taxes - my + employer
contribution?

Thanks a lot in advance!
- Puneet Maini

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >