A foreclosure and a 401(k)
Question: I took money out of my 401K to get my home out of foreclosure because I lost my job. Do I have to pay taxes and penalty on that money? Howard, Bronx, NY
Answer; It all depends on your age. If you’re under age 59 Â½ you have to pay the 10% penalty and the amount you withdrew is subject to income taxes. If you’re over 59 Â½ you won’t get socked with the penalty, but you will still owe income taxes.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
Thank you to our Marketplace Investors!
Your generosity keeps nonprofit journalism strong, now more