the question is what if I early distribution from 401K, what percentage should I pay the...

the question is what if I early distribution from 401K, what percentage should I pay the addition tax in 2020?

Solutions

Expert Solution

If you withdraw early from the 401K retirement plan, you are not required to pay any additional percentage of tax. Yes, really, the rate of tax will be the effective rate of tax that is applicable to you in the year of withdrawal. Provided you are not covered under any exceptions to early withdrawals provided.

The list of exceptions are as follows,

The distribution was made to your estate or beneficiary after your death.
The distribution was made because you are totally and permanently disabled.
The withdrawal was made to cover qualified post-secondary education expenses.
The withdrawal was made to cover deductible medical expenses.
The distribution was made to pay for an IRS levy.
The withdrawal was a Qualified Reservist Distribution (generally, one made after being called to active duty for 180 days).
The distribution was made as an installment in a series of equal and periodic payments over your life expectancy, or over the life expectancy of you and your beneficiary or beneficiaries. If the retirement plan is not an IRA, you must have left employment before payments began.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

I just quit my job and I have a 401k with 20k. What are three options...

I just quit my job and I have a 401k with 20k. What are three options I can do with the money? What should I ABSOLUTELY not do with this money? Answer the questions above using good reasoning.

what is the maximum you can take early distribution from a Roth IRA for a purchase...

what is the maximum you can take early distribution from a Roth IRA for a purchase a home without a penalty?

Which of the following reasons for an early distribution from an IRA is NOT an exception...

Which of the following reasons for an early distribution from an IRA is NOT an exception to the 10% penalty? Made on or after the account owner attains age 59½ Early distributions made for qualifying medical expenses exceeding 10% of the account owner’s AGI The plan owner becomes totally and permanently disabled A distribution made after age 55 and separation from service with an employer

I have searched the percentage of each question, but I want to know why there are...

I have searched the percentage of each question, but I want to know why there are differences? a. What's the percentage of loans out of total assets for Bank of America and Central Bank? What explains such a significant difference? BOA:40.2%, Central Bank:67%. b. What's the percentage of total deposits out of total liabilities (including capital) for Bank of America and Central Bank? Again, why do you think there is a significant difference? BOA:66.1%, Central Bank:89%.

Since a normal distribution is taken into account, what percentage of the distribution values will fall...

Since a normal distribution is taken into account, what percentage of the distribution values will fall in the range of a standard deviation below and above the mean? A -) %68 B -) %50 C -) %99.7 D -) %99.5

Companies sometimes offer their customers a discount on their purchase if they pay early. What is...

Companies sometimes offer their customers a discount on their purchase if they pay early. What is the benefit for the company to take a reduced amount on these purchases and from the customer’s point of view is it beneficial for them to take the discount. What factors does the customer have to consider when deciding to take the discount?

Question 11 (1 point) Which of the following are early mediators of type I hypersensitivity? Question...

Question 11 (1 point) Which of the following are early mediators of type I hypersensitivity? Question 11 options: histamines, prostaglandins, IL-4, serotonin, altered phospholipids histamines, prostaglandins as well as eosinophil chemotaxins, serotonin histamines, prostaglandins, cytokines, serotonin leukotrienes, platelet activating factors, histamines, prostaglandins Question 12 (1 point) An example of a type I hypersensitivity reaction is Question 12 options: an allergic reaction to the gold in a ring the allergic reaction to peanuts a transfusion reaction the allergic reaction to poison...

From an economical perspective, should the government pay ransom?

What percentage of your equity should you give to the investor?

An investor offers you $801,066 in exchange for shares of your start-up company. The investor demands an annual rate of return of 62%, and expect that your IPO will be in 5 years. At that time you expect your firm to have annual income of around $1,811,566 dollars. A similar firm was recently acquired for $18,930,059 dollars. At the time of acquisition, their income was $1,573,471 million dollars per year.What percentage of your equity should you give to the investor?Enter...

Question 14. In which situation should you exercise an American call or an American put early,...

Question 14. In which situation should you exercise an American call or an American put early, assuming no dividends? Provide your reasoning.

Subjects