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In response to
"Am I crazy to consider taking the penalty and withdrawing an old small retirement account?"
by
Dano
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for that amount it's an either or deal (imo). If you have something you can use it for, take the cash. You'll get dinged for 20% automatic withholding
Posted by
decline (aka Decline)
Oct 7 '24, 13:18
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at the time of distribution. You'll receive a 1099 for this tax year as it will be reported as income and you will get the 10% penalty when you do you taxes.
Note: if you tax rate is > 20% you may owe a bit more on the withdrawal amount. Conversely, if you tax rate is < 20% you'll get a bit of that initial withholdings back.
the !0% is paid regardless.
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