All taxes on 401(k) withdrawals are due in the year the withdrawals occurred.
Lastly, withdrawing money from your 401(k) will cost you in terms of lost earnings on the money you withdrew from that 401(k).
Accessing your retirement funds comes with different rules, depending on whether it’s a 401(k) or an IRA.
Based on your company’s rules, you can often borrow up to ,000 (or half your vested balance) from a 401(k) and repay it within five years —unless you leave the company sooner, in which case you have 60 days to repay or face tax consequences and possible penalties. The money you receive is an actual withdrawal, albeit a temporary one: You have only 60 days to re-deposit it, either into the same IRA or put a new one before it is considered a permanent withdrawal, with tax and potential penalty consequences.
You wind up paying a early withdrawal fee, which is a percentage of what your taking out.Your spouse is entitled to a portion of what you take out unless you spend it for the family's benefit.If you use the money for your own personal reasons, you must compensate your spouse for her share of the asset in the division of property as part of the divorce process.Please register to participate in our discussions with 2 million other members - it's free and quick!Some forums can only be seen by registered members.Contributions to your 401(k), both by you and by your employer, are marital property if they're made during your marriage.