What would you like to do?
The question should say "age 59 and 1/2 years." For whatever reason, 59.5 years is the age at which you can start withdrawing funds from your 401K without penalty. Before …59 and 1/2, the penalty for early withdrawal is 10% of the taxable amount of your withdrawal. You can also withdraw money from your fund without the 10% penalty if you are leaving your employer when you are at least 55 or you become disabled. If you are eligible to withdraw money from your fund then you have to pay income taxes on the withdrawal. However, you do not have to pay income taxes if the money you withdraw go into a different employer sponsored plan or an Individual Retirement Account (IRA).
You are allowed to make withdrawals, for example, for certain qualified hardships -- though you'll probably still face a 10% early withdrawal penalty if you're under 59…-1/2, plus owe ordinary income taxes. Comb the fine print in your 401(k) plan prospectus. It will spell out what qualifies as a hardship. Although every plan varies, that may include withdrawals after the onset of sudden disability, money for the purchase of a first home, money for burial or funeral costs, money for repair of damages to your principal residence, money for payment of higher education expenses, money for payments necessary to prevent eviction or foreclosure, and money for certain medical expenses that aren't reimbursed by your insurer.
Contact Plan Administrator(where account is held) for forms.
591/2, I recently read you can take distributions without penalty at 55. articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/jobless-what-to-do-with-your…-401k.aspx
sorry but no it is almost impossible
You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any… distribution amounts from your 401K plan.
The taxable amount of the distribution will be subject to your marginal tax rates when the taxable amount of the distribution is added to all of your other worldwide gross inc…ome after your income tax return is completed correctly you will know how would be owed on the taxable amount of the distribution. You are the only one that has all of the necessary information that will have to be reported on your income tax return for the year in order to do the calculation for the numbers that you are looking for. If you would like to do some estimated tax calculations you would need to go to www.irs.gov and use the search box for 1040ES go to page 6 for the 2010 Tax Rate Schedules page 5 has the estimated tax worksheet. You can find the estimated tax worksheet and instructions by using the below enclosed information If you would like to do some estimated tax calculations you would need to go to www.irs.gov and use the search box for 1040ES go to page 6 for the 2009 Tax Rate Schedules and page 5 for the worksheet. http://www.irs.gov/pub/irs-pdf/f1040es.pdf You are welcome to try any of the calculators for some estimates to get an idea of what things may look like after using the correct IRS forms and compare the numbers. Use your search engine and type ESTIMATED TAX CALCULATORS and you will be able to find several of them that you can use for this purpose.
59.5 kilograms is 9 stone and 5.2 pounds.
The MAX amount you can draw is 300k.
Typically this is done by filling out a hardship application and sending it in with proof of your hardship need. You will need to contact your Plan Administrator to get the fo…rm.
Tax at 59.5 what? $10 X 59.5% would be $5.95 tax amount. The 10% early withdrawal penalty amount for taxable distribution amounts from your retirement plans would NOT apply to… any of the taxable distribution amount in the year after you turn 59 1/2. The taxable amount of the distribution will be added to all of your other gross worldwide income on your 1040 federal income tax return and WILL BE SUBJECT TO INCOME TAX AT YOUR MARGINAL TAX RATE in the year that you receive the distribution amount.
Yes, if you want to take it without penalty.
Typically, you're able to withdrawal from a 401k if you're atleast Age 59 1/2 and older or if you're no longer employed with the Company that the 401k you were contributing to… belongs to. However, some companies offer in-service withdrawals. Those are typically withdrawals from monies that you contributed on an after-tax basis, withdrawals from monies that your employer contributed on your behalf into the plan, and hardship withdrawals. Hardship withdrawals typically require you to complete a Hardship Withdrawal Application and send it in with proof of your hardship need. The qualifying reasons for a harship are typically: Prevention of eviction/foreclosure, Unreimbursed medical expenses, Post Secondary Education, Funeral/Burial expenses, Repair to your primary residence that qualifies as a casualty deduction expense for tax purposes, or Purchase of a primary residence. Some companies may honor other reasons as being a Qualified Hardship Reason. The best way to know if you're able to take a withdrawal from your 401k would be to contact your Plan Administrator or Reference your Summary Plan Description.
That depends on if you are still active with the company. If you are not, then you are entitled to your vested portion of the account. If you are still active, then the plan i…s governed by the company's plan document. The Summary Plan Description (SPD) will have all the information you need on available options. Those options may include loans, hardship withdraws, and in-service withdraws. In-service withdraws may be restricted to people over age 59.5 but I've seen plan designed to allow rollover money, after tax money, etc eligible to be withdrawn as well.
Mandatory 20% when you withdraw. There could also be a mandatory state tax withholding as well depending on which state you live. However, that may not be all the taxes you ow…e. The 20% could just be a down payment to the IRS. If you are in the 25% tax bracket then you would owe the extra 5% at tax time. If you are under age 59.5 then you would owe an additional 10% early withdraw penalty.
Every bank allows you to do an early withdrawal of 401ks. However, this should only be done in emergencies, because it will cost you a lot of money in the long term.
The employee needs to review the 401-K plan regarding the process on making hardship withdrawal. The employee can also contact the 401-K plan provider and inquire the provisio…ns and procedures to process a hardship withdrawal.