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?

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

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