There are specific IRS rules for a 401k withdrawal.
401k withdrawal rules
state that if you are under 59 1/2 years of age, you will incur a 10% penalty for early withdrawal.
If are are 59 1/2 years of age, or older, then you can withdraw from your 401k without penalty. There is 20% IRS withholding tax for your annual income however.
Generally speaking, there are IRS allowed exceptions given for a 401k early withdrawal which are for "immediate and heavy financial need"...
There could be further options, such as putting your funds into an annuity...
An annuity has significant benefts to your retirement financial planning.
You can get a deferred annuity that grows and grows into a large retirement base...
Or, you can get an immediate annuity that begins providing steady monthly income in the near future...
But, each scenario has to be carefully reviewed against the available options...
Get a free annuity quote - let us help guide you through the options to make the best choices for you!
Or, get a free consultation from a Certified Financial Planner to go over your plans to help you make the You'll be glad you did the right thing.
best decision for your needs.
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