I only worked at a company for a few years and never rolled my 401K over to my new plan with my new job. I want to just withdraw the entire amount early instead of rolling it over to my current 401K with new job. It gives me the option to choose anywhere from 20-50% federal tax withholding. I know 20% is mandatory so what are the scenarios when you would withhold more than 20%?
I also saw that if you withdraw early, you may have to pay an extra 10% penalty tax when filing next year. So should I withhold 30% then? Can someone explain? Thank you!!
