Guys,
Do you know what is the exact amount on which 10% penalty is imposed when you would withdraw money from your 401(k) account? Is it on the absolute amount you have in your 401(k) account?
Some background info abt me: I work here in US, but plan to move/settle back overseas after like 3-4 years.
Basically I want to know: Can I still make some money after the 10% penalty taking into consideration the money contributed by employer?
Here's the calculation I have:
My Contribution (1 yr) : 3917.99 Employer Contribution (1 yr) : 1958.99
Total (1 yr) : 5876.99 Approx 5 % investment gain : 6170.84
Now, if I would like to withdraw this money what all expenses would I have to be ready for.
Would the 10% penalty be on 6170.84 ? On what amount would I have to pay taxes - my + employer contribution?
Thanks a lot in advance!
- Puneet Maini