Early Withdrawal

Archive for August, 2006

Federation for American Immigration Reform on In-State Tuition for Illegal Aliens

Question: How much do retirement funds charge for Early Withdrawal?

Wondering if the tax rate is the same across the board for 401k – 403b investment companies? Also, what are the benefits of taking a loan on a fund as opposed to Early Withdrawal…

Answer: It’s not the company that charges it, it’s the IRS, and the penalty is 10% of the amount withdrawn. You also pay whatever income tax is due on the withdrawal, but that’s the same whether you take it early or after age 59-1/2.

Some companies might charge an additional fee, but it would probably be nominal.

With most 401k plans you can’t take an Early Withdrawal if you’re still working there. Most let you take a loan, though.

If you take a loan, you don’t pay tax or a penalty. But if you don’t pay it back on schedule, it becomes a withddrawal with penalty and the tax.

Finance & Investment Tips : Penalty for Cashing in a 401k Early

Question: Question for CPAs or Financial Advisors please:?

I am 46 yrs old and due to financial hardship am forced to make an Early Withdrawal from my IRA this year. My question is: If I need more money later this year from the IRA can I make a 2nd withdrawal in the same year? Or is there a limit of only 1 Early Withdrawal per year on an IRA account ?

Answer: No penalty.

If you are very resposible, and can handle only the debt you need to survive while you get a job, you may consider getting debt, if you can get low rates.

401k Rollover Don’t Leave It Behind