Thanks for your question! I would love to assist you tonight with your inquiry.

If you are 53, you will pay a penalty of 10%

If you wait until age 59 1/2, you won't have to pay the 10% early withdrawal penalty.

Under both circumstances you will also be responsible for income tax at your marginal rate.

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Well, when you withdrawal the money, the company holding the funds will automatically withhold the 10% penalty plus a 20% federal tax withholding. Then you will enter this information in TurboTax when you go to do your taxes at the end of the year.

It should be fairly straightforward. I prefer using HR Block at home to TurboTax, I find that people have a lot less difficulties with their product, plus you can have a "second glance" or something like that where a tax pro looks over your return for you and helps you out in that respect. However, i don't endorse HR Block it's just a product I've used personally when I haven't been at a job where I have access to tax prep software.

Thanks!