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Question

Asked 12/3/2008

Can I cash out a 401K

I am an employee. I have a 401k with my firm. Can I choose to cash it out? What are the penalties? (I live in NYC)
thank you
Ajc

 
 
 
 
 
Answers

Answer 1/2 - Submitted 12/3/2008

If you are under 59 1/2, you will pay a 10% penalty for cashing out early. As well you will also have to pay income tax on the withdrawal according to your tax schedule.

 
 

Answer 2/2 - Submitted 10/6/2010

You can cash out early, but it is not advisable as there is a 10% penalty for early withdrawal.

 
 
 
 
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