Yes. But, for the record, I didn’t mean just the 10% penalty for being less than 59 1/2. I meant probably paying the top tax bracket on most of what is taken out in one year, which all depends on how much one has in the 401.
Yes, it could be a BIG tax Hit . . But...like the Dolphins Owner, you can save some money if BHO increases the Taxes on the Rich.
Now, no need to withdraw and join the RICH so you can get a BIG HIT on a 401 K withdrawal. But some people don’t have that much money in a 401K . . Kids, College and all that.
If Congress passes that ONE, then they won’t get Re-elected.
It’s not nice for the Newly elected to mess with a 401K savings.