Withdraw 401K - Urgent, please help.

[Ahmad Mohammed]

I need your help in deciding to withdraw 401k.

I draw $170k per year. I have $100K in401K. I am planning to relocate to my home country for good and need your advice. How much can I get on hand after penalty and taxes? Youre help will be greatly appreciated. I am 40 years old.

[Mark Nolan]

@Ahmad Mohammed

Assuming you are no longer working for the company that sponsors the 401k plan, the distribution will be subject to a mandatory 20% federal tax withholding at time of distribution. Therefore, you will only receive 80 percent. You will then pay the rest of the taxes and the 10% early distribution penalty when you file your 2017 taxes next year. To learn more about the 401k distribution rules, see the following. 

https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants-general-distribution-rules