A 401(k) distribution is taxed as ordinary income at whatever your marginal tax rate is depending on other income. If you are under age 59 1/2 then there will be an additional 10% penalty for early distribution. Many 401(k) plans do not allow distributions prior to retirement age.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
