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What are 401k withdrawal rules?

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asked Sep 5, 2012 in 401k plans by anonymous
recategorized Sep 5, 2012 by Drake Peters
   

1 Answer

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With rare exceptions, all 401K withdrawals are taxable as ordinary income. An additional 10% early distribution penalty tax will be assessed if you have not reached at least age 59 ½ when you take your distribution.

answered Jun 7, 2013 by carrieh Inquisitive Expert (19,820 points)
What if you took a hardship withdrawl, for a house purchase, and the house deal falls through.  I am over 59 and 1/2 still working and my empployer plan made me go haedship for the money.  Do I have to pay the 10% early distribution penalty?

Thanks

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