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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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I am looking to cash out about $3000 of my 401k plan from a

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I am looking to cash out about $3000 of my 401k plan from a previous employer. The plan states that they would immediately take out 20% for federal income tax. In addition to this, they state that if I am under age 59 1/2 (which I am) that a 10% addidtional tax for early withdrawals may also apply. I am taking this out to pay off a school debt on credit card. Would I get any of this money back on my federal tax return? I live in the state of TN. Thanks!
Submitted: 9 years ago.
Category: Tax
Expert:  Marvin,EA replied 9 years ago.
Hello and thank you for using Just Answer. You might receive some of the $600 (20%) if your total taxable income is 15% or under. You will not be able to get a refund from the 10% penalty for early withdrawal.
Customer: replied 9 years ago.
How would I know if my taxable income would be 15% or under? I don't think it was last year but I wasn't in school then. I am currently enrolled as a part time student and working full time. Thanks.
Expert:  Marvin,EA replied 9 years ago.
If you filing status is single, taxable income from $1 to $7,300 is tax at 10%. Taxable income from $7,301 to 29,700 is tax at 15%.
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