We decided to pull out my wife's retirement fund from her first job to get out of debt. 20% Fed and 5% St were deducted. We are in the 28% tax bracket. Will we need to pay estimated taxes this year for the 8% difference? How about for the 10% penalty?
by 
Slick Jimmy
ANSWERS: 1
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The government is reeeeally good at remembering to get their money... You will need to make up the 8% difference when you file for taxes. The 10% penalty will also need to be paid. It's a little suprising that the retirement fund didn't automatically penalize you 10%--most funds do it so you don't have to remember to--but you will definately be liable for it come next April (or in the next few months if you haven't filed yet).
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