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Discover Bank Forms

Discover Bank Forms

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Video instructions and help with filling out and completing Discover Bank Forms

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Instructions and help about discover bank forms

So what we're talking about today is early distributions from your retirement plan, from your 401(k), from your IRA, or in other words robbing your retirement account. So we're going to define early as any time before you're actually retired, where you're going to take some money out of that that you have intent on spending and we want to take a look at the ramifications of that. If you're younger than 59 1/2, you're going to need to pay the income tax plus a 10% penalty on the amount that you withdrew, so you start putting that together when you get a tax rate in the 20-25%, 18%, let's just say 20%, and then you've got state income taxes if you live in a state that taxes and you add 10% on top of that, if you needed to get out $10,000 for something, you're going to have to draw out $15,000 so you have an extra $5,000 just to pay the taxes, not good. If it's necessary, then you're going to want to b

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