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April 15, 2024
Question

I took an early withdrawal from a standard 401k at $15,000 and it's supposed to be a 10% tax but on the final review it's saying I owe $15,071. Is this an error?

  • April 15, 2024
  • 1 reply
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1 reply

April 15, 2024

Please be aware, the 10% is only the early withdrawal penalty. The distribution is also included in your taxable income and taxed at your tax rate. The tax due is the amount calculated on your total taxable income.

 

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