401 k help! Somebody thats knows anything about 401 k.?

correct - irs charges 10% withdrawal penalty if choose take money out of ira before turn 59 1/2 years old (there few exceptions - listed below). if older okay. withdrawal treated income have pay regular income tax on money. because when put money in deducted taxes, if withdraw irs wants portion back.

aside age exceptions around 10% withdrawal penalties these:


-you become totally disabled.
-you in debt medical expenses exceed 7.5% of adjusted gross income.
-you required court order give money divorced spouse, child, or dependent.
-you separated service (through permanent layoff, termination, quitting or taking retirement) in year turn 55, or later.
-you separated service , have set payment schedule withdraw money in substantially equal amounts on course of life expectancy. (once begin taking kind of distribution required continue 5 years or until reach age 59½, whichever longer).

please note withdrawals still subject regular income tax no matter what.

more specific details see accountant.

i have started putting in money 401 k. have alittle under $3000 in. i've been working @ company 9 months , im being layed off. told if take cash 401 k penalized 10%. can give me advice on should do?

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