What is the penalty if I sell some of my 401K?
406918
It will depend on your age and retirement status when you withdraw. Generally speaking, you will be assessed a penalty equal to 10 percent of the taxable amount of your withdrawal if you withdraw money before you reach age 59 1/2. There are some instances when you may not have to pay a penalty. Keep in mind that you must pay income taxes on all withdrawals of taxable money, \n\nDepending on your plan, you may be eligible for a "hardship withdrawal," for those unexpected circumstances when you may need your money before retirement. According to IRS safe harbor regulations, your "hardship" must represent an "immediate and heavy financial need" and is necessary to satisfy the financial need. Also, there must not be "any other resources that are reasonably available," to you to handle that financial need. The IRS has deemed the following four distribution reasons as representing an immediate and heavy financial need:\n\nCertain medical expenses for you, your spouse or your dependents \nPurchase of a primary residence (excluding mortgage payment) \nPayments of certain post-secondary education expenses for the next year for you, your spouse or your dependents \nTo prevent eviction from or foreclosure on your primary home \n \nPlease be advised that if you take a hardship withdrawal from the plan following "safe harbor" rules, you may be suspended from making contributions to the plan for a minimum of six months.  \n \nSome plans also allow hardship withdrawals for other reasons. Check with your benefits department. You will need to show your employer proof of how you intend to use the money, and proof that the amount you requested isn't more than enough to satisfy your need.  \n \nAs a result of the Economic Growth and Tax Relief Reconciliation Act of 2001, hardship withdrawals are not eligible to be rolled over, and are not subject to a federal income tax withholding. You may still owe income taxes and a possible 10% early withdrawal penalty if you are under 59 1/2 when you file your annual income tax return. State and local taxes may also apply. Please note: You should consult your financial/tax adviser with specific questions about your personal situation if you are considering a withdrawal from your plan account.
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!
709782
If you rolled it into a new 401K or IRA account you don't need to do anything else, as you should not be taxed on anything.  If you withdre any funds however before the roll over, then you will need to report it on your tax return,
56556
There is no limit to the number of 401(k) plans you can have, other than the number of employers you have/had. Some employers require that you remove your funds within a certain amount of time; others just like having your money.\n\nI usually take my funds out of a 401(k) plan and put it into an IRA so that my old company cannot continue to manage (or mis-manage, think Enron) it. If you transfer it to a qualified IRA, there is no penalty. Talk to your old company and whoever's handling the IRA to make sure you transfer it properly ... there are usually standard forms. DON'T TAKE IT OUT FIRST AND THEN TRY TO RE-DEPOSIT IT ELSEWHERE ... THAT WILL INCUR PENALTIES!!
709063
Assuming you sell the stock for a gain and you hold the stock in your own name (not an IRA, 401k, etc.), yes you do.  You can't do a like kind exchange as you can with assets like real property.
38741
None.  You're you allowed to exempt up to 250k of the gain from taxes, if you're filing single or seperately.  And 500k if you're married filing jointly.
65352
You can usually draw out up to 50% but you have to pay it back like a loan (monthly payments) to yourself with whatever interest rate your 401k has in place usually around 8-12%.\n whatever you draw out to keep before retirment age you will be hit with penalties.\n Get ahold of your 401k people for details on rates and withdrawl policies.
197563
No, you  had to pay a penalty for 2004 for taking out your 401 early. You just lost that money.
12383
There is a 10% early withdrawal penalty, plus the $5,000 is counted as ordinary income in the calendar year you withdraw it so you will have to pay tax on it.
735662
If you are cashing out, then it would not make a difference if you sell before or after the distrubtion date. However, if you can wait till next year you can differ your capital gains tax.\n\nIf you are putting money into the fund then it is best to invest after the distrubtion date. Typically when a fund pays out (dividends & cap gains) the NAV (Price) drops; however, the number of shares you own increases if you selected for dividend/cap gain reinvestment. In other words,  your total account value will remain unchanged. However, the capital gain distrubtions may be taxable (If not in an IRA), and therefore, it is best to differ your taxes to next year (Assuming that you are in the same tax bracket next year)
988055
Boy, I would really avoid that if you can. The withholding isn't really up to you. They are going to keep 30 percent if the principal is before-tax money (in a Roth) and 30 percent of the profit if it is after tax money (in a traditional). But the penalty is so severe that you ought to consider doing other things (second job or whatever) to avoid the hit and the loss of your compounding if you possibly can. $1,000 left alone for 40 years will grow to more than $100,000 in a growth stock fund.
173431
no. they come off the value of your house when you go to sell it. meaning less profit for the you to show the irs.
969386
I don't know the exact answer, but my guess would be that if you sold it, the government would take the taxes out automatically
592059
10% penalty plus taxes...so, yeah, at least 30% penalty. \n\nProject returns 50%....which will be taxable, right? So, if you are in 25% bracket, you lose 25% of your return...so, now you are down to a net gain of 37 1/2%.\nSo, it costs 30% to access your money to make a 37 1/2% return....\ntherefore...\nyou net 7 1/2% return. My guess is....you stand a decent chance of making 7 1/2% INSIDE the 401/k and saving yourself all the hassle of moving the $$ around.
267675
You might make an easier case (if an audit happens) if they put it on the market and it didn't sell for a while then they agreed to sell it to you for more than anyone else would pay.\n\nI don' think there is a limit, just some little rule that will "red flag" it for the IRS. Call a CPA anonymously and ask a quick question. They will most likely answer for free.
172445
Usually not. As long as all the rules are followed correctly and you don't take the funds out or do some kind of prohibited transaction. Have your lawyer or CPA review th plan with you to make sure it all goes the right way.\n\nsorry for your loss.
178259
Your tax rate is 15%.  This is assuming that this is straight income from operations and that you had no gain on the sale of assets.