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Level 1
posted Oct 30, 2024 12:44:02 PM

401k withdrawal

Hello! How can I figure out if withdrawing $$ from my 401k early affect my taxes (i.e. will I end up having to pay taxes, instead of getting a refund)?

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1 Replies
Expert Alumni
Oct 30, 2024 1:13:22 PM

Making an early withdrawal from your 401(k) can lead to a 10% penalty on the early withdrawal amount.  Please see the following link for more information: 

https://turbotax.intuit.com/tax-tips/retirement/an-early-withdrawal-from-your-401k-understanding-the-consequences/L0M8yJMYS?srsltid=AfmBOorJb91h5kUprkl1WHOsDriMRdjp2aj-73tcOUwyzcU8sHrKLoU6 

 

You may find it useful to use a tax calculator to help you determine the overall effect an early 401(k) distribution will have on your Federal tax outcome (receiving a refund or paying a balance due).  TurboTax will release a 2024 tax calculator later this year.