how long after you quit work can you withdraw 401
For example, if you have $10,000 in a 401(k) plan, your former employer will withhold $2,000 and give you a check for $8,000. To avoid paying income tax and the early withdrawal penalty, you will need to deposit that $8,000 and $2,000 from another source into another retirement account within 60 days.f the 401(k) balance is paid to you, 20 percent of the balance will be withheld for income tax. Then you will have 60 days to put the entire distribution, including the withheld 20 percent, into a new retirement account.