Wednesday, 27 August 2014

I am looking to take an early withdrawal from my 401k. I understand I am looking at 10 off the bat in addition to 20 for federal. What per...

Question

I am looking to take an early withdrawal from my 401k. I understand I am looking at 10% off the bat in addition to 20% for federal. What percentage does New York state take on this?



Answer

NY does not take anything unless you authorize a state tax withholding. The 10% is a penalty for early withdrawal and is not a withholding item. The withholding issues should be discussed with your plan administrator.



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