I withdrew from my 401K both last year and this year..>>
Last year , I could do the whole thing over the internet; then got paper check; which took time to clear, but I got the check in about a week.
This year, I actually had to have forms faxxed to me; then I filled them out, signed and notorized them; and faxxed them back; used ACH to have cash direct wire deposit into my checking account, so it was immediately available; once they had received my notorized, faxxed, application. got use of my money in less than a week, but they said it might take more time for them to validate everything in some cases.
gl
Last year , I could do the whole thing over the internet; then got paper check; which took time to clear, but I got the check in about a week.
This year, I actually had to have forms faxxed to me; then I filled them out, signed and notorized them; and faxxed them back; used ACH to have cash direct wire deposit into my checking account, so it was immediately available; once they had received my notorized, faxxed, application. got use of my money in less than a week, but they said it might take more time for them to validate everything in some cases.
gl
They will auto take out 20% fed withholding though; and you can elect to withhold more; which I wish I had done last year..lol
also, it depends on the state you live in whether you are required to withhold state taxes..>
Yes, you pay taxes on 401K like regular income, but no penalty if you are old; like me..
also, it depends on the state you live in whether you are required to withhold state taxes..>
Yes, you pay taxes on 401K like regular income, but no penalty if you are old; like me..
All depends on if it is a regular 401k or a roth 401k tho for tax purposes and what is being wothdrawn. For example, I switched jobs two months prior to purchasing a home. I needed money for a down payment, so I rolled my roth 401k from my previous job into both a roth IRA (for my post tax 401k contributions) and a regular IRA (for emplyee matching and earnings). I was able to have this all accomplished within 7 business days and did not have any tax withheld for my distribution. Come tax time this year, I only paid income tax on my regular IRA withdrawl (employee matching and earnings) and did not have to pay the 10% penalty because the distribution was used for a down payment on my first home.
