Withdrawing 401K when student
Posted in the 401K Forum
#1 Feb 22, 2012
Hi all - I have a question about withdrawing 401K. I have worked in the US for 4 years and have about 30K in my account. I am thinking of withdrawing my money from 401k and I know everyone will scream no but please read below to see if it makes sense for me.
- During 2012, I am a student again and will have no income otherwise, which will put me on a very low tax bracket.
- I live outside of US, and will not have to do state taxes (I hope this is true, can someone tell me if this assumption is wrong)
- I never intend to return to the US
- In this situation, I assume that I will need to pay a 10% penalty and income tax, which should be around 10%, provided I have no other income. Is there anything else I need to pay?
- Given all this, does it make sense?(Please no arguments about this being worth a million in 50 years, we all know that net present value of that amount right now is $30K)
Thank you so much for your help!
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