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quasi3
LIF Adult
Member since 7/07 1764 total posts
Name:
Stacey
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Early pension withdrawal question
I have a 403B with my employer and a cash pension plan.
I will be leaving and I am looking to cash out my plan. I am no where near retirement age and the balances are less than $10,000.
I know I will have to pay a 10% penalty but do I also have to pay state and federal taxes on this money?
I am reading about it on my human resources website, but it is very confusing.
TIA!
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Posted 7/21/10 12:16 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
LeShellem
A new beginning
Member since 2/07 3600 total posts
Name:
LeShelle
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Re: Early pension withdrawal question
You will have to pay taxes on it as well.
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| Posted 7/21/10 1:05 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Early pension withdrawal question
unless you really need it I would roll it over.
You will lose close to half of your money.
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| Posted 7/21/10 1:07 PM |
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quasi3
LIF Adult
Member since 7/07 1764 total posts
Name:
Stacey
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Re: Early pension withdrawal question
Posted by Blu-ize
unless you really need it I would roll it over.
You will lose close to half of your money.
Thanks!
The only reason I am going to cash it in is becuase I never contributed my money to it. It was ALL employer contributions, so it is basically found money.
I am leaving my job to do student teaching and this would help us out financially.
Thanks again!
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| Posted 7/21/10 1:11 PM |
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dani731
Blessed!!!
Member since 1/08 3355 total posts
Name:
D
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Re: Early pension withdrawal question
yes I you have to pay taxes. I would just request (if its an option) for them to tax the money before cutting you a check. This way you don't have to come up with that money when you file your taxes next spring.
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| Posted 7/21/10 1:16 PM |
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Peainapod
Peanuts are here!
Member since 1/09 13591 total posts
Name:
Diana
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Re: Early pension withdrawal question
with 401K's i think the federal hit is like 20%? and the state i guess that depends. but they will take that out right off the bat before its cashed out to you.
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| Posted 7/21/10 1:30 PM |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: Early pension withdrawal question
10% penalty when you do your taxes
20% will be withheld for federal taxes when you withdraw it
and the amount will be added to your income for the year - increasing your AGI.
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| Posted 7/21/10 1:33 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Early pension withdrawal question
are you in the NYS retirement? If so, keep it in, it may help you in terms of contributing to the teachers RS
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| Posted 7/21/10 3:10 PM |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: Early pension withdrawal question
Posted by Erica
are you in the NYS retirement? If so, keep it in, it may help you in terms of contributing to the teachers RS
I was going to say the same thing. I was a lifeguard for 9 summers and was able to use that time towards my teacher pension, which allowed me to become vested early.
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| Posted 7/21/10 7:55 PM |
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