Tuesday, July 22, 2014

How much can you expect to pay for early withdraw of a 401k?

How much can you expect to pay for early withdraw of a 401k?
You are allowed to make withdrawals, for example, for certainqualified hardships -- though you'll probably still face a 10%early withdrawal penalty if you're under 59-1/2, plus owe ordinaryincome taxes. Comb the fine print in your 401(k) plan prospectus.It will spell out what qualifies as a hardship.Although every plan varies, that may include withdrawals after theonset of sudden disability, money for the purchase of a first home,money for burial or funeral costs, money for repair of damages toyour principal residence, money for payment of higher educationexpenses, money for payments necessary to prevent eviction orforeclosure, and money for certain medical expenses that aren'treimbursed by your insurer.

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