How Is A 401K Withdrawal Penalty Calculated On $30,000.00 To Payoff Hospital Bills Or A Home Mortgage?
On any withdrawal, you are looking at either 36% or 38%, I can’t remember. Either way, this is a stiff penalty to pay. Fortunately, you have options. I would recommend simply borrowing the money from your 401k to avoid the penalties. You can only borrow up to 50% of your 401k value. Now, if this is a standard IRA as opposed to a 401k, I don’t think that this is an option. I mentioned this due to your mention of a home based business. Now, borrowing the money is risky if she is in jeopardy of losing her job as this money has to be paid back. This is good idea in order to bypass any interest fees.
