Liquidating your 401k
This information does not constitute an application, offer or commitment by Wells Fargo & Company, or a representation of interest rates, investment performance or any other future performance.The accuracy of this calculator and its applicability to your circumstances is not guaranteed.
There are other limited situations when the 10% early withdrawal penalty may be waived, including but not limited to, permanent disability and medical expenses greater than 7.5% of your adjusted gross income.The alternative is to “self-certify,” which doesn’t require you to disclose your finances.However, you won’t be able to make new 401K contributions for six months after taking the withdrawal.However, there are times that you might have to tap into your 401(k) and give up those benefits. The first is that the money is gone from your savings.The second is that you have to pay federal and, depending on where you live, state income taxes on it.
Not only is your contribution tax deductible today, but your contributions to your account are also growing tax-deferred.