Does 401K Withdrawal Affect Taxes?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    When you withdraw money from a 401(k) it is taxed as a distribution of ordinary income. If you take it out prematurely and you don’t meet an exception you will also be subject to a special 10% surcharge. Remember that money in a 401(k) has not been taxed previously.
    Answered on February 3, 2015
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