Replies to post #573931 on Fannie Mae-No Politics (FNMA)

[gruntstyle]

Correct Golf, if the monies are in a 401k that is still active (you still work there), see if the plan allows for a one time rollover/withdrawal to a rollover IRA, this will prevent the penalty and tax implications. If it's an old 401k, roll it if you don't have brokerage type access (should likely roll it anyway, there could be plan administrative fees being assessed if you are no longer an employee).
Pulling it out of a 401k/IRA type vehicle will cause a 10% penalty on the withdrawn amount, AND your highest taxable rate on the entire amount, NOT the after penalty amount. So if your highest marginal rate is 30%, and you pull out 100K, your tax and penalty would be 40K (i.e. not 10K plus 30% of 90K, or 37K total).
General comments, please consult your tax adisor :)