SharonD007
Expert Alumni

Get your taxes done using TurboTax

When you make an early withdrawal without an exception from your retirement account before age 59 1/2, you pay a 10% early withdrawal penalty plus the income taxes on the full amount of your withdrawal (which is the entire $150,000).

 

We can't figure out your tax liability without the details on your tax return in this forum but i can tell you the 10% penalty on your $150,000 withdrawal is $15,000. The income tax on the $150,000 withdrawal depends on the tax bracket that you're in. If you live in a federally declared disaster area, the 10% early withdrawal penalty for accounts up to $22,000 for tax year 2024 is waived.

 

For more information, refer to the TurboTax article An Early Withdrawal From Your 401(k) and Can I make a hardship withdrawal from my 401(k)?

 

Also review the TurboTax article: What is Form 5329: Additional Taxes on Qualified Retirement Plans?

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