If the account value is $2,488.62, how much will the 401k check be after taxes and fees in NYC?

Question

Thx.

Answer 1

Were do you kids get the idea that a 401K is a big savings account that you can just tap when-ever-you want to?  Therein is the error to your thinking.  That 401K account will become your life blood when you retire.  Wipe it out now just because times are a little hard and you've lost the purpose of it to start with.  That $2500 you have put aside already will compound itself over and over plus the additions that you hopefully continue to make.  Translation you can be looking at a 6 figure account when you reach retirement age.  Meanwhile fully understand the following, unless you are 59-1/2 years old you with be penality 10% off the top right now.  

If you've lost the job that was funding this account that's fine you will roll it over into your own account, and or into and combined with your next employment situation.  Get ahold of a financial advisor to lay out your opinions for you but above all think long and hard before trying to close that tax free income.

Answer 2

I would guess the hit will be about $1,000. You will pay a 10% penalty for cashing it in and the rest will go to state and federal taxes.

You are not just losing the $1,000, you are losing the tax deferred earnings over your lifetime. Think of it as throwing away about $10,000 (depending on your age)

I would NEVER tap my 401K plan no matter how desperate.

Answer 3

You can safely deduct 1/3 for Uncle Sam.  Don't cash this out, its not worth it.  Save it for retirement.

Answer 4

Ask the 401(k) custodian.