I opened solo 401k and contributed in Dec 2024. It is still in cash account. I changed my mind about opening the 401k. How can I withdraw without penalty?

[ThoengB88]

I haven't filed tax yet, and would like to pay income tax on it, instead. I just want to avoid the penalty. I am an independent contractor (1099).

[MayaD]

You can't avoid the penalty. If you are under 59 ½ years old, cashing out your Solo 401k will not only increase your taxable income but also subject you to a 10% early withdrawal penalty.

[dmertz]

Unless the contribution was an excess contribution, the contribution is irrevocable.