What are the penelties for withdrawing?

Answer 1

The penalty for early withdrawal of a 401K account is 10%. There are a few exclusions to the penalty, such as:

• Attainment of age 59 1/2.
• Age 55 when terminated.
• Permanently disabled.
• Monies are indirectly rolled over.
• Monies were used for medical expenses.
• If the account is paid out in installments.
• If you received the account from someone who has passed away OR you received the monies from a divorce settlement (QDRO).