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ThoengB88
March 7, 2025
Question

I opened solo 401k and contributed in Dec 2024. It is still in cash account. I changed my mind about opening the 401k. How can I withdraw without penalty?

  • March 7, 2025
  • 2 replies
  • 0 views
I haven't filed tax yet, and would like to pay income tax on it, instead. I just want to avoid the penalty. I am an independent contractor (1099).

    2 replies

    M
    MayaD
    March 7, 2025

    You can't avoid the penalty. If you are under 59 ½ years old, cashing out your Solo 401k will not only increase your taxable income but also subject you to a 10% early withdrawal penalty.

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    D
    dmertz
    Employee
    March 7, 2025

    Unless the contribution was an excess contribution, the contribution is irrevocable.

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