Overthinkingopal OP t1_jectt6a wrote on March 31, 2023 at 1:59 AM

Reply to comment by nkyguy1988 in Why would I pay more than 20% when withdrawing from a 457? Am I gonna be screwed for early withdraw? by Overthinkingopal

From what I’ve read online and what the people at MERS told me there is no 10% penalty for this type of account. Just the 20% tax and 2.4% state.

nkyguy1988 t1_jecv7ko wrote on March 31, 2023 at 2:10 AM

Forgot you said 457. That would be true. Depending on your income tax rate, your actual tax obligation may be more or less than 20%. Considering there isn't a tax bracket that is 20%, it's highly likely you either over or under pay. Withholding on withdraw does not equal your final tax obligation.