Quote:
Originally Posted by kach22i
I believe you only have to pay taxes on an early 401K withdraw if you made money on it.
Sometimes the stock market takes a dive and you break even or lose money, then you don't owe anything.
Using that reasoning you will be paying only on the profit the 401k made, not the entire amount.
I don't use TurboTax, so cannot answer the rest of the question.
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Wrong
401k money is pre tax. You must pay tax at the current rate on all money within the plan when it is withdrawn.