• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

early 401k withdrawal w/o tax penalty

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

G

ggww

Guest
we live in state of Tennessee.
retired from large company at age 48.
will turn 55 in 2002.
compay maintains my "qualified retirement plan (401K) under irs rules.
the plan allows for a 10 year annual installments anytime after retirement or separation

if i elect the 10 year annual installment options in 2002, will i be subject to a 10% penalty on top of the ordinary income taxes?
 
Last edited:


L

loku

Guest
Yes you will be subject to the 10% penalty on early withdrawals, unless you are disabled. You can withdraw funds without the penalty after you become 59-1/2 years old.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top