Ask a Lawyer and Get Answers to Your Legal Questions
OK , so just to clarify, If I go to my employer and tell them I want to close the 401K and cash out, They would send 20% to the IRS ( for est. taxes on full amount of 44K = 8,800) and then cut a check to me for 35,200. subsequently at the end of year I claim the 35,200 as income and pay any additional taxes over the 20% if required. otherwise the 35,200 is mine correct??.
OK, so to clarify again, I would still receive the 35,200 and then have to pay a 10% penalty. would the 10% need to be paid then or at tax time ?
excellent, it seems you have answered all of my questions and I feel more clarity about the issue. Not sure I want to pay that much but I am now clear on my options.
Thank you very much