Withdrawing from your 401(k) fund
Posted on April 3rd, 2007 by Financial Diva
If you are withdrawing money from your 401(k) fund before you turn 59.5 years old, there is generally a 10% penalty on it, with the exception of special circumstances. These include:
- Used to buy, build or rebuild your first home
- Some medical expenses that aren’t covered by insurance, when it is more than 7.5% of your income
- You have a disability
- SERP program (Substantially Equal Periodic Payments)
This is just a basic list of the most common exemptions, however there are many more for special circumstances. For more information on withdrawing from your 401(k) fund, the IRS has more information here.
Filed under: 401(k)
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