Tax Penalty for Cashing Out a 401(k)doi:urn:uuid:88e9a38aa6311410VgnVCM100000d7c1a8c0RCRDYou'd have to pay income taxes, plus a possible penalty, and your retirement would be at risk.Judy O'ConnorFox Business
It's also not a great idea to cash out your 401(k) to pay off debt or buy a car, Harding says. Early withdrawals from a 401(k) should be only for true emergencies, he adds. Even if you manage to avoid the 10% penalty, you probably will still have to pay income taxes when ...