Early withdrawal from 401k in iowa?

Question

has anyone done this and could you give me the bottom line? my 401k isn't large and i'm no longer eligible to contribute/receive a match, so i want to pull out but want more info if possible. anyone NOT from iowa is welcome too, i will welcome the federal info at least! thanks.

Answer 1

If you don't keep it in a retirement account, you will lose close to half of the amount that is in there due to the 10% early withdrawal penalty and you'll have to pay income taxes on the entire amount as well.  These are federal items.  I don't know if you have an income tax where you live, but if you do, you'll have to pay them taxes as well.  Unless you desperately need that money, find another retirement account to put it in.