401k Withdrawal before age 59.

rickspfc75 — Sun, 25 Nov 2018 02:07:58 GMT

Is the money I withdraw from my 401k before age 59 treated solely as regular income or the gains from the stock's increased value treated differently as capital gains?

Re: 401k Withdrawal before age 59.

Carl — Sun, 25 Nov 2018 03:52:02 GMT

Money withdrawn from a 401(k) is taxed as ordinary income. If withdrawn before retirement age then an additional 10% early withdrawal penalty will be assessed also. Note that if your state taxes personal income, then some states will also assess an early withdrawal penalty. I honestly don't know what states do that, off the top of my head. (If any do in fact, assess an early withdrawal penalty.)

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401k Withdrawal before age 59.

Re: 401k Withdrawal before age 59.