Will I have to pay a penalty if I withdraw all my funds from my 401k due to loos

Posted in the Dows Forum

shjuawanalepende jorgrass

Buffalo, NY

#1 Oct 9, 2013
Will I have to pay a penalty if I withdraw all my funds from my 401k due to loosing my job?
-
I am afraid you do, a hardship distribution does not eliminate the 10% penalty unless you have turned 55 at the time you lose your job.
as per the IRS one of the exceptions to the penalty is if the distribution was
"Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55.
Keep in mind also, that due to hurricane Katrina last year, the IRS made significant changes to distributions from IRAs and other Retirement Plans.
Again as per the IRS:
To qualify, the distribution must be made on or after Aug. 25, 2005, and before Jan.1, 2007, from an eligible retirement plan such as a qualified plan or an IRA, to an eligible individual one whose principal residence was in the Hurricane Katrina disaster area on Aug. 28, 2005, and who sustained an economic loss from Hurricane Katrina. The total amount of tax favored distributions an individual can receive from all plans, annuities, or IRAs is $100,000.
An individual who receives qualified Hurricane Katrina distributions does not have to pay the 10-percent additional tax on early distributions. The distributions generally are included in income, and can be included ratably over a three year period. However, if the individual recontributes the distribution into an eligible retirement plan within 3 years, the distribution is treated as a rollover.
luluadeguqaiefla

Buffalo, NY

#2 Oct 9, 2013
shjuawanalependejorgrass wrote:
Will I have to pay a penalty if I withdraw all my funds from my 401k due to loosing my job?
-
I am afraid you do, a hardship distribution does not eliminate the 10% penalty unless you have turned 55 at the time you lose your job.
as per the IRS one of the exceptions to the penalty is if the distribution was
"Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55.
Keep in mind also, that due to hurricane Katrina last year, the IRS made significant changes to distributions from IRAs and other Retirement Plans.
Again as per the IRS:
To qualify, the distribution must be made on or after Aug. 25, 2005, and before Jan.1, 2007, from an eligible retirement plan such as a qualified plan or an IRA, to an eligible individual one whose principal residence was in the Hurricane Katrina disaster area on Aug. 28, 2005, and who sustained an economic loss from Hurricane Katrina. The total amount of tax favored distributions an individual can receive from all plans, annuities, or IRAs is $100,000.
An individual who receives qualified Hurricane Katrina distributions does not have to pay the 10-percent additional tax on early distributions. The distributions generally are included in income, and can be included ratably over a three year period. However, if the individual recontributes the distribution into an eligible retirement plan within 3 years, the distribution is treated as a rollover..
You can find the best solutions for you at:-hxxp://WWW.ANNUITY-HELP.US
geto

Cadereyta De Montes, Mexico

#3 Oct 23, 2013
Will I have to pay a penalty if I withdraw all my funds from my 401k due to loosing my job?I am afraid you do, a hardship distribution does not eliminate the 10% penalty unless you have turned 55 at the time you lose your job.
as per the IRS one of the exceptions to the penalty is if the distribution was
"Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55.
Keep in mind also, that due to hurricane Katrina last year, the IRS made significant changes to distributions from IRAs and other Retirement Plans.
Again as per the IRS:
To qualify, the distribution must be made on or after Aug. 25, 2005, and before Jan.1, 2007, from an eligible retirement plan such as a qualified plan or an IRA, to an eligible individual one whose principal residence was in the Hurricane Katrina disaster area on Aug. 28, 2005, and who sustained an economic loss from Hurricane Katrina. The total amount of tax favored distributions an individual can receive from all plans, annuities, or IRAs is $100,000.
An individual who receives qualified Hurricane Katrina distributions does not have to pay the 10-percent additional tax on early distributions. The distributions generally are included in income, and can be included ratably over a three year period. However, if the individual recontributes the distribution into an eligible retirement plan within 3 years, the distribution is treated as a rollover.
otif

Cadereyta De Montes, Mexico

#4 Oct 23, 2013
geto wrote:
Will I have to pay a penalty if I withdraw all my funds from my 401k due to loosing my job?I am afraid you do, a hardship distribution does not eliminate the 10% penalty unless you have turned 55 at the time you lose your job.
as per the IRS one of the exceptions to the penalty is if the distribution was
"Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55.
Keep in mind also, that due to hurricane Katrina last year, the IRS made significant changes to distributions from IRAs and other Retirement Plans.
Again as per the IRS:
To qualify, the distribution must be made on or after Aug. 25, 2005, and before Jan.1, 2007, from an eligible retirement plan such as a qualified plan or an IRA, to an eligible individual one whose principal residence was in the Hurricane Katrina disaster area on Aug. 28, 2005, and who sustained an economic loss from Hurricane Katrina. The total amount of tax favored distributions an individual can receive from all plans, annuities, or IRAs is $100,000.
An individual who receives qualified Hurricane Katrina distributions does not have to pay the 10-percent additional tax on early distributions. The distributions generally are included in income, and can be included ratably over a three year period. However, if the individual recontributes the distribution into an eligible retirement plan within 3 years, the distribution is treated as a rollover..
You can find the best solutions for you at:-hxxp://WWW.ANNUITY-HELP.US

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