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If you withdraw money from your 401K before your reach the age of 59 1/2, is 10% early withdrawal penalty assessed on the income or the capital contributions or both?


Expert Mark Anderson's Answer:

It is on the distribution. Unless you roll it over or meet one of the hardship exceptions you be taxed on the distribution. You will receive a 1099 that shows the distribution and you be taxed on the distribution.

Mark Anderson, JD


21 yrs experience

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