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If I were to liquidate a 401k or a Roth IRA, wouild taxes owed amount to the same?

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if you cash them in yes.
Plus pay a 10 % penalty at tax time too.
Learn from my experience.
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if you cash them in yes.
Plus pay a 10 % penalty at tax time too.
Learn from my experience.
I know I will owe taxes, but for each would I owe the same?
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I know I will owe taxes, but for each would I owe the same?
depending on the amount, yes I believe you would owe the same.
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depending on the amount, yes I believe you would owe the same.
Okey-dokey. Thank you! :)
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No, the Roth would be taxable on the earnings only for the early withdrawal (which I'm assuming since you're no where near 59.5yrs), but the 401k is all pre-tax monies, so the whole distribution is taxable. And being an early withdrawal you'll get a 10% penalty (on the earnings for the Roth & on the whole amount for the 401), unless the money is used for one of the exceptions (first home purchase, medical, educational, death/disab, tax levy).
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The money would be used to pay off student loans.
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The money would be used to pay off student loans.
To get the educational exception would take current tuition/expenses.
Just my thought, but to take the 10% hit would be a tough wash against student loan rates which are usually pretty low. Have you refinanced the student loan? I'm pretty sure there are low rates out there and then you wouldn't pay the penalty on the early withdraw.
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To get the educational exception would take current tuition/expenses.
Just my thought, but to take the 10% hit would be a tough wash against student loan rates which are usually pretty low. Have you refinanced the student loan? I'm pretty sure there are low rates out there and then you wouldn't pay the penalty on the early withdraw.
I have a super low rate on my loans--I just want to pay the darn thing off. Oh well. It was a thought. :(
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ahhh...student loans! Now THAT'S living!!!

same boat as you, lisa...
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Lisa you could sell it, take the proceeds and invest in ATT wireless stock. Their Wisconsin division is kicking it lately.
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