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What type of retirement fund? 401(k), Traditional IRA, Roth IRA, other?
It's just a 401K
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.
If you take a Withdrawal it is taxable on your return and may push you into a higher tax bracket and more income can reduce or eliminate some credits you may qualify for. So be careful. Then there is a 10% Early Withdrawal Penalty if you are under 59 1/2 or under 55 if you left that job. You can lose like up to 50% of it for taxes and penalties for federal and state.
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