I am deemed disabled with the Veterans Affairs. I am 42 years old. I did not work all throughout 2016. I was given the option to take a lump sum with Credit Suisse for $14,036. They withheld 20 percent of the money for tax reasons. How do I become exempt from paying the penalty fee?
Are you referring to an Employer Sponsored 401k plan? The 20% could have been withheld for taxes, not penalties. Since you are disabled you might be able to withdraw your 401k assets under the economic hardship clause, however, you still have to pay taxes depending on your annual income.
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