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Has anyone used the new rules for 401k withdrawals? Is it easy? How fast do you get your money? Do you have to fill out a bunch of paperwork?
401k withdrawal vivid 19
- Thread starter Grocery George
- Start date
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- Views 1K
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- 401k
- Joined
- Aug 29, 2016
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Sorry Covid 19
- Joined
- Jun 8, 2011
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Did you spend your stimulus check already? Did you file for unemployment?
Go to targetpayandbenefits.com for info on the 401k.
Go to targetpayandbenefits.com for info on the 401k.
- Joined
- Apr 30, 2019
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- 1,200
If you take a withdrawal from a 401k, 10% is automatically withheld for Federal taxes. Normally, there's an additional 10% withheld as a penalty for early redemption (applies if you are under age 59-1/2). That additional 10% penalty is being waived by Congress due to COVID-19.
WARNING: Withdrawal from a 401k becomes TAXABLE INCOME to you. You will owe Federal and State (if applicable) income tax on the 401k proceeds, unless it's from a "Roth 401k", which most of you don't have. The 10% withholding usually IS NOT enough, you may end up in the humiliating and painful position of having to write a check to the IRS for extra taxes due.
WARNING: Withdrawal from a 401k becomes TAXABLE INCOME to you. You will owe Federal and State (if applicable) income tax on the 401k proceeds, unless it's from a "Roth 401k", which most of you don't have. The 10% withholding usually IS NOT enough, you may end up in the humiliating and painful position of having to write a check to the IRS for extra taxes due.
