Hands off that 401(k)

June 1, 2017 by OSYB Staff

The Wandering Tax Professional warns that taking money from your 401(k) while you are still working and under the age of 59 1/2 is rarely a good idea.  Even when you are in a bind to pay for college tuition, medical expenses or a down payment on a home, you should know that the federal and state taxes and the 10% premature withdrawal penalty are quite prohibitive.  You really need to talk to your tax professional before you drain your 401(k) as there are other options that will cost you less in the long run.  Find our more:  DON’T TOUCH THAT 401(K)!