I and under 50 years old and planing to take mi money of my 401k watt my taxes y penalties are?

Question

I and under 50 years old and planing to take mi money of my 401k watt my taxes y penalties are?

Answer 1

35%.

Answer 2

The penalty is 10% and the taxes depend on what your ordinary income is.  The higher the income, the higher the tax rate.  You should leave your 401(k) money alone. The reason that the taxes and penalties are so high is to discourage people from robbing themselves of their retirement money.  You can end up losing 40% to 45% of the total to penalties and taxes.  Is there really anything you want or need that is worth paying a 40%-45% premium on?  Because that is what you do if you take money out of your 401(k).

Answer 3

I believe they are over 10%, but you better check with your bank. If you got a higher interest rate for the 401 than regular savings, the interest rate might reduce to the savings rate.