What are the tax consequences of taking a distribution from my 401(k)?
The consequences of taking a distribution from your 401(k) can vary depending upon your age. The general rule is if you are over the age of 59½, you can take a distribution which is taxed as ordinary income. If you are under the age of 59½, the distribution will be taxed as ordinary income, and you are subject to a 10% penalty. There are several exceptions to this general rule. Therefore, we recommend you contact your accountant or pension plan administrator before taking a distribution.
