401k Withdrawal before age 59.

[rickspfc75]

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?

[Carl]

Money withdrawn from a 401(k) is taxed as ordinary income. If withdrawn before retirement age then an additional 10% early withdrawal penalty will be assessed also.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.)