Charged 10% penalty on Federal and State for early withdrawal 401k

[kisxena]

January 2018, I withdrew from my 401k. I was unemployed and had zero income. I was charged 10% penalty both on Federal and State. Is this the norm? I thought it was only one 10% penalty by the federal government not also state penalty. No other taxes were taken out, to my dismay.

Need clarification.

[NCperson]

if you are younger than 59 1/2 years old, yes, there is a 10% penalty of the withdrawal for federal returns - you should that on your federal income tax forms for this year,

for state, what state?  why do you think there was a 10% tax penalty?  don't worry about what was withheld from the payment last January - what is important is what is on your tax submission to the state now. 

[kisxena]

Thanks for your response. I was 55 at the time of this withdrawal.

Line 4: Federal Income Tax Withheld - 10% of Line 1

Line 12: State Tax Withheld - 10% of Line 1

This is what I was referring to. Since I was unemployed back in Jan 2018 and not receiving any unemployment disbursements (exp in Feb 2017), my state tax rate based on this withdrawal was only $319.66 plus 4% of anything over $20,255, which doesn't total Line 12.

[NCperson]

what your employer withheld are just estimates based on tables provided by the federal government and the state you live it.  I wouldn't infer that just because both used 10% those are the penalties for early withdrawal.  the critical word is 'estimate'.  I am not aware that the federal rules requires withholding the penalty for early withdrawal nor aware that any state charges 10% penalty for early withdrawal.  

it just coincidence that the federal and state withholding as well as the penalty for early withdrawal are all 10% 

then when  you do your tax return the actual amount owed will be calculated and the withholdings will be subtracted them this actual calculation.

does that make sense.

[kisxena]

Kind of.

This withdrawal was from my IRA Rollover (my credit union) after I left the company in 2014.

When I completed the withdrawal application, I stated to have 20% taxes taken out from each the Federal and State. So, they may have only taken out 20%. Guess, I'll see once I file my return.

Thanks