401(k) - Penalty
Answer:
If you are under age 59 and a half and do not roll over the distribution, then you will be subject to a 10% penalty in addition to the regular income tax on the distribution unless you meet one of these exceptions:
If you are disabled or pay substantial medical expenses with the distribution, or
if you are age 55 or older, you may not have to pay the penalty.
The penalty is calculated on IRS Form 5329.
If you are disabled or pay substantial medical expenses with the distribution, or
if you are age 55 or older, you may not have to pay the penalty.
The penalty is calculated on IRS Form 5329.
