Family member wants to cash out 401K. They charge 10% early withdrawal penalty and then 20% for taxes I believe. I know that the money will count as income so you will have to pay taxes on it. Here's where my question comes in;
Does that 20% they take away pretty much negate(or at least go towards) what they will owe to the IRS upon reporting the money as income?
Sorry if this is worded weird; I tried my best!
Submitted February 21, 2019 at 07:40PM by NOREZguy https://ift.tt/2BMsdE2
