Welcome Guest. Register Now!  



Find a tax professional cpa near you

View Single Post
  #3 (permalink)  
Old 12-23-2008, 01:10 AM
TaxGuru's Avatar
TaxGuru TaxGuru is offline
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 1,861
Blog Entries: 3
Generally speaking, a premature withdrawal from a 401k pension plan will result in

1. a 10% early withdrawal penalty, and,

2. subjecting the entire distribution to your ordinary income tax rate.

Thus, you should attempt to withhold an amount equal to the sum of 10% plus your ordinary tax rate which I would assume would be around 25%.
__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.
Reply With Quote
 
Follow us on Twitter
» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 
Forum for CPAs
 
Financial Planning