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nothlit t1_jad701d wrote

Reply to comment by iguesswhatevs in Just got my check from former employer closing my 401k account by iguesswhatevs

If you are under age 59.5, any money that leaves a retirement account and does not enter another retirement account is subject to the 10% early withdrawal penalty.

Withholding is just a prepaid estimate of tax. Your actual tax may be higher or lower, depending on other factors.

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iguesswhatevs OP t1_jad7e8c wrote

So what you’re saying is that 21% federal income tax PLUS 10% withdrawal fee?

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nothlit t1_jad8c8k wrote

You would pay 10% additional tax on the amount that was withheld and not rolled over

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