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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75532  
Subject: Re: 401(K) withdrawal Date: 7/9/1998 2:12 PM
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Nilhil Baht,

<<I am well aware of the pitfalls of withdrawing money from a 401(K) account i.e. 10% penalty and a tax hit.
What I need to find out is how exactly will the tax
be calculated. Is it flat 28% capital gains on the gains and my tax rate on the principal and when is the 10% penalty calculated, before or after the taxes?>>

If you are in the 28% tax bracket, you will net 62% on an early withdrawal. 28% will go for taxes and another 10% will go to pay the early withdrawal penalty.

Regards....Pixy
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