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What are my options to have less of a penalty or taxes to withdraw on a 401k ?

Forum|Forum|7 years ago
June 1, 2019
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I'm unemployed and waiting to see if I get benefits. I do have 401k and don't what my options or to cash it out or roll it over. Trying to use to live on with the fewest penalities and taxes possible.

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Best answer by TomD8

This web reference explains your options very clearly: http://finance.zacks.com/close-out-401k-account-9392.html

T

TomD8Answer

Employee

This web reference explains your options very clearly: http://finance.zacks.com/close-out-401k-account-9392.html

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

S

SweetieJean

Employee

Any distribution is likely going to be taxable, so consider rolling it over to an Traditional IRA. You can then draw down on the IRA as needed.

There are some10% penalty exceptions. For example, there is no penalty if you were age 55+ at the time you left that employment. See others here:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

fanfare

Employee

you can't avoid penalties and tax on early 401k withdrawal, so take out as little as possible to let you get by.

What are my options to have less of a penalty or taxes to withdraw on a 401k ?

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