The Law Office of William C. Wombacher
309-674-8125 888-541-2088

May 2019 Archives

Early withdrawal of 401K funds without penalty

When unanticipated circumstances unfold, an account holder can draw money out of a 401(k) without penalty if it’s a qualifying event. A non-qualifying early withdrawal from a 401(k) typically results in a 10% penalty tax and payment of the standard income tax rate. If you meet the requirements for an early hardship distribution, you can tap into these funds in your time of need.