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Other financial discussions
If you don't need the money right away, you can roll it into an Traditional IRA tax free otherwise a 401(k) distribution is taxed as ordinary income at whatever your marginal tax rate is plus an additional 10% early distributions penalty if you are under age 59 1/2 (or age 55 at the time of separation from service).
For example, if you are in the 25% tax bracket and subject to the penalty then a 35% tax would be reasonable.
**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.**
‎July 10, 2019
8:20 AM
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