If I take my share of my husbands 401k out now because of divorce-what are the penalty and taxes?About$15,000.
106648
The penalty is 20%, if you reinvest into an IRA you will not have to pay the penalty.
562118
Basically, You have to pay the tax plus a 10% penalty\nTopic 424 - 401(k) Plans\n\nA section 401(k) plan is a type of tax-qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre–tax basis. These deferred wages (commonly referred to as elective deferrals) are not subject to income tax withholding at the time of deferral, and they are not reflected on your Form 1040 (PDF) since they were not included in the taxable wages on your Form W-2 (PDF). However, they are included as wages subject to social security, Medicare, and federal unemployment taxes. \n\nThe amount that an employee may elect to defer to a 401(k) plan is limited. Therefore, your elective contributions may be limited based on the terms of your 401(k) plan. Refer to Publication 525, Taxable and Nontaxable Income, for more information about elective deferrals. Employers should refer to Publication 560, Retirement Plans for Small Business, for information about setting up and maintaining retirement plans for employees, including 401(k) plans. \n\nDistributions from a 401(k) plan may qualify for optional lump–sum distribution treatment or rollover treatment as long as they meet the respective requirements. For more information, refer to Topic 412, Lump–Sum Distributions, Topic 413, Rollovers from Retirement Plans, and Topic 555, 10–Year Tax Option for Lump–Sum Distributions.\n\nMany 401(k) plans allow employees to make a hardship withdrawal because of immediate and heavy financial needs. Generally, hardship distributions from a 401(k) plan are limited to the amount of the employee's elective deferrals only, and do not include any income earned on the deferred amounts. Hardship distributions are not treated as eligible rollover distributions. \n\nDistributions received before age 59 1/2 are subject to an early distribution penalty of 10% additional tax unless an exception applies. For more information about the treatment of retirement plan distributions, refer to Publication 575, Pension and Annuity Income.
742987
Check with your HR or Benefits department, but generally speaking you can not cash out your 401(k) unles you seperate from service first.  The only alternative is a loan, but that could become messy if you wind up leaving before you pay it back.\n\nIf somehow your plan allows early distributions prior to retirement or seperation of service, then the other answers are correct.  If you receive a check directly from the plan, then by law they have to withhold 20% for taxes.  The entire distribution will more than likely be taxable (if you have after tax contributions, then you pay no tax on those) and you will be subject to a 10% IRS penalty. \n\nIf you meet one of the qualifying distribution exceptions for IRAs (first time home purchase, medical expenses, college expenses, etc...) then if you roll your 401(k) into an IRA FIRST and then take a distribution you may be able to avoid the 10% penalty.  You also control the amount that is withheld, so you may be able to keep more of your money.  Again, this is usually only an option if you're over 59 1/2 or if you seperate from service i.e. quit or change jobs.  But you may be able to keep more of your money.  You can open a rollover IRA at any bank, find one that DOESN'T charge a fee for the account.
337018
There is a 10% Penalty on the money, and the rest of the money will be taxed at your basic Federal and Local rate.  For example, if you have $10,000 in your HSA, and you are taxed at a 30% rate, you will pay $1000 in penalties, and 30% of the remaining $9,000 =  $2700 in taxes, netting you $6,300.
132063
You can withdraw from your 401(k) without penalty at age 59 and a half. Some plans allow you to withdraw money for specific purposes, but require you to repay it within a specific time period. Check your plan for details.
714890
Not a good idea at all, the penalty for borrowing against your retirement funds is pretty heavy, they will tax the crap out of you, best to try the Ameridream program or Fannie Mae Foundation. Best of Luck.
574662
depends on the income. Subtract deductions, contribution to IRA/401K etc. and see what the net income is. Then look at the tax tables to determine the federal tax
493145
This is a HORRIBLE idea. When you withdraw from your retirement fund prematurely the company that is holding it is REQUIRED to withhold 10% because that's the penalty, however, that isn't all you end up paying for that money.  You still have to pay taxes on the additional income from this withdrawal on top of the 10% penalty, which can total as much as 20-30%.  \n\nFor example, if you withdraw $10K from your retirement fund, you will receive a check for $9K, however during tax time your employer will issue a 1099-R for $10k and you will have to add this to your wages.  So if you make $35K per year, you will have to pay taxes on $45K rather than $35 K in addition to paying $1k in penalties.  \n\nDon't touch your retirement fund, instead, finance your car.  Paying 6% to finance a car is much better than taking money from your retirement fund and paying 20-30% to be able to use your retirement money.
1165121
They will automatically take out 20% for income tax, plus a 10% penalty. Also you have to figure in your income tax bracket; ours is 28%
725978
You can cash it in with a substantial penalty.\nYou can let it sit there and hopefully grow.\nYou can roll it over into a IRA\nYou can roll it over into another 401K\nThe part of it that YOU contributed through you\npay is always yours, The part that your employer matched (if they did) is "vested' over a period of time, so if you were there less than a year\nthe part THEY contributed they probably take back.\nif you were there 5 years, it's probably all yours also.
123026
The exemption if you are married filing a joint return is $500,000, if you're single its $250,000.  You had to have lived in it for 2 out of 5 years that you owned it to claim the exemption.  Look at IRS Publication 523 for information on selling your home.
29021
If you fail to pay your 401k loan, then you are taxed on it as if you would have taken a regular distribution. (Tax + Penalty for early distribution).\n\nThe amount that you owe is deducted from your total 401k amount.\n\nFor example.  If you take a 401k loan for $1000, and you have $3000 in your 401k and you quit your job, then the $1000 is deducted from your $3000 leaving you with a $2000 401k total.\n\nThe $1000 is also treated like a "distribution".  In other words, it's treated like an early withdrawal.  So at the end of the year, you owe a 43% penalty on the $1000, or $430 in taxes.  (33% income tax [or whatever your income tax rate is], 10% penalty).\n\nFurther more, since that $1000 is treated like regular income, it may push you into a higher tax bracket.
1059792
You can't, only your ex can. And then there may be penalties, and if your ex wasn't "vested" there may not be any money coming from it at all.
820338
Any amount put into a 'qualified retirement plan' as a result of a 'qualified domestic relations order' is not a taxable event.  Any amount not transferred to a 'qualified retirement plan', would be treated as a withdraw from such a plan.  If you are under 59 1/2, there is a 10% early withdraw penalty.  This is above and beyond income tax at regular rates on the amount withdrawn.
1084342
NO....there is a substantial penalty, usually 10% for withdrawing 401K money early...not to mention you will have to pay taxes on the money.  Don't do it.
1172090
You'll be subject to a 10% IRS penalty for early withdrawal from your qualified retirement plan, plus whatever penalties the provider of your plan has.\n\nSince interest on a mortgage is deductible, why not continue to carry the mortgage?  I advise against most other debt, but a mortgage, under the current tax laws, still makes sense for maximizing your dollars.\n\nGood question!
262889
I am not an attorney. If your husband owed the money as an individual - then he was liable for the debt not you. If you filed joint tax returns, then you too MAY be liable for a portion OR/AND all the back taxes. It is really up to you whether or not you wish to pay your deceased husbands debts.\n\nLife Insurance is paid out to you tax free - I'm not an accountant either - If your late husbands creditors know there is life insurance, there is a good chance they will try to make a claim on it.\n\nConsider seeking legal aid, to make get a clear picture as to how you stand, so you can get on with your life and know that you and your children are safe.\n\nI am sorry for your loss.\n\nTake care, and good luck.