Thanks drertz: That means that the "penalty" is $117 times the sum of your federal and state marginal tax rates"
In case of a regular withdrawl after retirement age, if I am in 32% federal tax bracket
will that be 117*.32 = $37.44 and that will be only 1 time during that particular withdrawal?
Is my understanding correct?
What happens in case if I decide to take an early distribution due to hardship? Will IRS consider this $117 amount as a "first out" item from the total existing 401K balance ?
Thanks
Kevin
