@abdu1 wrote:
Thank you for the detailed answer, the amount is $3,200 I’m still in mid 30 and I need that money, I make around $35,000 a year
will I owe money if I withdraw? And how much the amount will be after all the fees?
Thanks again
If you take the withdrawal, you will owe regular income tax, state income tax, and a 10% penalty. Depending on your other income and the state you live in, the total tax bill could be as low as 10% or as high as 45%. I can't be more specific without knowing a lot more about your income and tax situation.
Just for the sake of information, if you can manage to rollover the money to an IRA, even if you did nothing else and never added funds, you would have $25,000 when you retire at age 70. If you could contribute just $50 a month (5 coffees), you would have $100,000. By comparison, If you wait 10 years to start saving for retirement, $50 a month would get you less than $35,000. That's the power of starting early. Compare that to netting less than $2000 now, if you are in a high tax environment.
Best wishes either way.
