early 401k withdrew

Hi,

I would like to know if I do early 401k withdraw and I have lost 100k in Stock this year (Realized loss)

Would i be able to not to pay any taxes for withdraw since I have loss money during this year.

Thanks in advance.

516

Level 15

May 26, 2020 3:29:07 PM

the Tax Code prevents you from doing this sort of thing by limiting your capital loss to no more than $3,000 per year

if you wish, you may take out $3,000 from your 401k (not recommended). You will still have to pay the 10% penalty of $300.

Returning Member

May 27, 2020 1:25:42 AM

Sorry,

I had loss of 100k this year in my normal account.I would like to withdraw 401k so The loss of 100k can be tax deductible for 401k ? is the loss even for this year is limited to $3000 ?

Thanks,

Taher

Level 15

May 27, 2020 4:40:22 PM

sorry but this is your original question and I answered it above.

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early 401k withdrew