ANSWERS: 2
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If you are under 59 1/2 the money you take out will be subject to income taxes (both state and fed depending on what state you live in) and then an additional 10% penalty will be added on too. The amount you actually owe in income tax depends on what the rest of your return looks like.
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I'm in Indiana and was well under 59 1/2 many years ago when I cashed in a 401k from aprevious job to pay cash for my new roof. Was about 30% penalty, which was OK, because it would have been a lot more in the long run if I took out a loan and had to pay back all that interest. That way, was paid for and no worries. Good luck on all this.
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