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Asked 2/15/2010
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pulled out some money from my 401K on a hardship withdrawal to purchase a first time home. I had 15% held out for taxes. Will I be penalized for my I pulled out some money from my 401K on a hardship withdrawal to purchase a first time home. I had 15% held out for taxes. Will I be penalized for my withdrawal? Any help is appreciated.
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Answer 2/6 - Submitted 2/15/2010
Answer 3/6 - Submitted 2/15/2010
No matter what the hardship , you have to pay income tax (usually 20%) on
the money withdrawn , then theres the 10 % penalty , which is what the hardship
withdraw is about , avoiding the additional 10% penalty.
The money is pretax , so you will have to pay income tax , no matter what situation.
sorry , wish i had better news.
Answer 4/6 - Submitted 2/16/2010
Answer 5/6 - Submitted 2/16/2010
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