Q:

What are some ways to withdraw from a Mercer Financial Group 401(k)?

A:

Quick Answer

It is possible to withdraw from a Mercer Financial Group 401(k) by paying a 10-percent early distribution penalty tax, according to 401kcalculator.org. If the account holder is over the age of 59 1/2, he does not need to pay this tax.

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Full Answer

There are several methods of withdrawing funds from a 401(k) without paying the fee, including the account holder ending his employment after age 55, or making an allowable medical expense deduction, explains 401kcalculator.org. However, these payments are counted as income for tax purposes, and individuals could end up paying a penalty of up to 40 percent once federal and state taxes are levied against the withdrawn funds.

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