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Asked 5/23/2009

How much will I be taxed if I take out my 401K?

How much will I be taxed if I cash in my 401K? I have about $30,000 in it. I have to do many home improvements and need the money but also want to make a smart decision that won't hurt me later.

 
 
 
 
 
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Answer 1/1 - Submitted 5/25/2009

Any amount you take out of your 401(k) is added to your other taxable income. In addition, if you are not at least 59 1/2 years old, you are subject to a 10% early withdrawal penalty.
For home repairs, it is usually cheaper to get a home equity loan (if you can, these days).

 
 
 
 
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