We want to take the money out of 401k plan as we are moving to another country.how much penalty ?

Question

We want to take the money out of 401k plan as we are moving to another country.how much penalty ?

Answer 1

It depends upon the amount involved, other income for the year, and whether it is taxed by your state.  If the amount involved is significant, it could push into a higher tax bracket.  So federal income tax, 10% penalty if under age 59.5, and possibly state tax could eat up almost half of it.

If the amount involved is large, you may come out ahead drawing it out over a period of years.