401k withdrawal to pay taxes
If you do not wait until the age of 59-1/2 to withdraw your 401(k) funds, you may pay a penalty tax in addition to federal, state and local taxes. In most circumstances, an early withdrawal triggers a penalty equal to 10 percent of the withdrawal amount.For example, if you withdraw $10,000, you must pay your taxes and then a $1,000 penalty for using the funds prior to reaching the minimum age.n most circumstances, an early withdrawal triggers a penalty equal to 10 percent of the withdrawal amount. For example, if you withdraw $10,000, you must pay your taxes and then a $1,000 penalty for using the funds prior to reaching the minimum age.