10% penalty for early withdrawal of 401K? SS?

Presbyter · 02-06-2009, 05:45 AM

I will be laid off after 25 years at my company. I'm server-Profound hearing loss with strong hearing aids. I will need to withdraw all my 401K at this time. I understand I will have to pay taxes on the withdrawal as well as a 10% penalty fee. I've heard that the social security offices might be able to waive the 10% penalty for early withdrawal of 401K. I'm not familiar with the SS process and I don't know the first step to ask the SS to waive the penalty. How do I go about saving 10% and what are the chances that I might qualify for this kind of waiver? Any suggestions would be greatly appreciated as my time will be running out.

Frisky Feline · 02-06-2009, 06:11 AM

All i know is that SSA is not involved with any kind of 401k. that is completely separately between SSA and any kind of 401k. maybe you are talking about IRS?? I think it is the best thing is to check with your 401k in your dept first and then it will lead you to ask IRS a few quesitons about it. If you have been paying SS taxes, then you can check with your local SSA to check about your other benefits that is not 401k.

good luck.

***sablescort*** · 02-06-2009, 06:22 AM

Moving to the right forum....

401k's and ADA sure does mix well like oil and water...NOT!

PowerON · 02-06-2009, 09:50 AM

Bye to 10% of what you earn in 401k.

radioman · 02-09-2009, 03:53 PM

there are no money saving ideas with the 401k if you draw early. either you wait until you are old enough to retire as per the SSA or pay huge penelty fees.

PowerON · 02-09-2009, 04:49 PM

There is no free. They work hard to make sure your money is on secure that you don't lose money.

greggypetty · 10-01-2009, 06:48 PM

I don't think there is a way around this fee. However, I am not an expert, so I may be wrong. I did a Google search, and found a very good site with 401K withdrawal rules. I couldn't go into a thorough investigation of the site, but I think reading up in there will give you the answers you need.

02-06-2009, 05:45 AM	#1 (permalink)
Presbyter Registered User Join Date: Oct 2006 Posts: 64	10% penalty for early withdrawal of 401K? SS? I will be laid off after 25 years at my company. I'm server-Profound hearing loss with strong hearing aids. I will need to withdraw all my 401K at this time. I understand I will have to pay taxes on the withdrawal as well as a 10% penalty fee. I've heard that the social security offices might be able to waive the 10% penalty for early withdrawal of 401K. I'm not familiar with the SS process and I don't know the first step to ask the SS to waive the penalty. How do I go about saving 10% and what are the chances that I might qualify for this kind of waiver? Any suggestions would be greatly appreciated as my time will be running out.

02-06-2009, 06:22 AM	#3 (permalink)
*sablescort* Joe Isuzu sold me this?! Join Date: May 2003 Location: Found my way back home to Knoxville...heh! Posts: 3,452	Moving to the right forum.... 401k's and ADA sure does mix well like oil and water...NOT! __________________ "Organized money hates me--and I welcome their hatred." - Franklin Delano Roosevelt (1882-1945) 2001 Rodeo-2.2 Holden 4 cyl/5-speed MUA stick/RWD 2001 ZX2 Escort-2.0 Zetec 4 cyl/5-speed MTX stick/FWD "I never gave anybody hell! I just told the truth and they thought it was hell." <--Harry S. Truman (1884-1972) Obama: FDR for the 21st Century...Bring on the New Deal II!

02-06-2009, 09:50 AM	#4 (permalink)
PowerON Click me 12 time Join Date: Mar 2007 Location: Suddenly, I'm cowboy. Posts: 6,863 Blog Entries: 4	Bye to 10% of what you earn in 401k. __________________ • [Illustrator.Blog-alloon.com] • Don't shoot me! I'm only blogger!

02-09-2009, 04:49 PM	#6 (permalink)
PowerON Click me 12 time Join Date: Mar 2007 Location: Suddenly, I'm cowboy. Posts: 6,863 Blog Entries: 4	There is no free. They work hard to make sure your money is on secure that you don't lose money. __________________ • [Illustrator.Blog-alloon.com] • Don't shoot me! I'm only blogger!

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02-06-2009, 06:11 AM	#2 (permalink)
Frisky Feline Provoke, Pounce, Purr Join Date: Jun 2003 Posts: 5,692	All i know is that SSA is not involved with any kind of 401k. that is completely separately between SSA and any kind of 401k. maybe you are talking about IRS?? I think it is the best thing is to check with your 401k in your dept first and then it will lead you to ask IRS a few quesitons about it. If you have been paying SS taxes, then you can check with your local SSA to check about your other benefits that is not 401k. good luck.

02-09-2009, 03:53 PM	#5 (permalink)
radioman Registered User Join Date: Jun 2008 Posts: 793	there are no money saving ideas with the 401k if you draw early. either you wait until you are old enough to retire as per the SSA or pay huge penelty fees.

10-01-2009, 06:48 PM	#7 (permalink)
greggypetty Registered User Join Date: Oct 2009 Posts: 2	I don't think there is a way around this fee. However, I am not an expert, so I may be wrong. I did a Google search, and found a very good site with 401K withdrawal rules. I couldn't go into a thorough investigation of the site, but I think reading up in there will give you the answers you need.