I am new to this board. This is probably an easy question, but I do need some help with it.I want to remove money from an old 401k held with a previous employer, about $6,500, and pay off some debt.I know there is a penalty of 10%, and I have to add the income into my yearly total for tax purposes.The IRS told me I pay nothing, no 10%, until I see if I was going to end up paying income tax for the year.If I was going to have to pay, then I should send in the 10% now. But if I am not going to have to pay at the end of the year, just include the 10% charge on my tax return and recieve a smaller refund.Can anybody tell me if this is true?The account people at the company holding my 401k couldn't answer this, and the IRS gave me the instructions above. Who do I trust? This board looks like the best spot to get a final answer. MK
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