brujubee
New Member

401K penalty withdrawal at 30%

I took out a disbursement of $2881 from my 401K and they removed 20% ie $576 (because of their business practices) which should have covered my 10% withdrawal and 10% penalty fees. However, when I enter these numbers into Turbotax it says I owe a further 10% or $288. It significantly lowers my return amount. Why is it charging the extra 10%? Is there a glitch in the software or did some genius in Washington decide it was a good idea to charge you 30% now?