Have investment for approx 11k. Im in debt and need to pay stuff. From Texas: What is the penalty fee?

I quit my job and they vested 11k, approximately. I left it there & they use Fidelity. I now need to pull my money because of debts but I know there are Federal taxes & state taxes and also a 10% penalty fee for simply withdrawing the money before the age of 59 1/2. What are the amounts that I have to pay towards Federal taxes & state taxes for the state of Texas? Please help! Thanks in advance!

Sounds like a 401k, if so:

You will be required to have 20% witheld for federal taxes (IRS rule) you are not required to have state taxes witheld. So you will get a maximum of 80% upfront. When you file your taxes it will be counted as normal income and the rate at which you get taxed will depend on your income tax for the year both state and federal (you will also owe 10% fereral penality and any state tax penality not sure if any for Texas). If you wait until Jan 1st it will be on your 2008 income taxes, if you did it today it would be on your 2007 taxes.

If you do this you may have to come up with the differance (any amount you owe but was not withled when you took the distribution) once you file your income taxes for the tax year you took the withdrawal. So, you may end up oweing a lot more than you expected for that tax year, so be aware of this and plan ahead.

You're talking about a 401(k) plan, apparently. You pay a 10% penalty off the top plus the total withdrawal amount is taxed as ordinary income. You'll lose 35-40% of the gross amount withdrawn.

is this a regular or ROTH ira? it makes a diff. In a reg ira, you must pay the 10% tax you mentioned (but you can choose to defer it), plus any cap. gains tax (amount will vary depending on portfolio) for example, if you hold muni-state or federal bonds, they will be state and federal tax free, accordingly.. So, you have to ask fidelity directly about you C.D.S.C fees.. they'll know what it means....
TIP--- If it's a roth IRA you can pull money that you contributed directly with NO penalty. People don't understand this! If i put 12,000 into a roth ira and it grows over 5 yrs to be 17,000...i can still pull my 12k with ZERO penalty, i only pay a penalty if I pull the additional 5k earned.. ALSO< in any roth ira i can even pull that other 5k (if I pulled the whole amount) and again I'd pay ZERO penalty IF i put the 5k back in 60 days.

You could try to google it ,here is some direct resource might be helpful.http://debt-consolidation.featured-resou...

Sounds like a 401k which is an employer sponsored plan. If its with your employer chances are its not a IRA as mentioned above (unless its a simple or SEP IRA, but these are relatively uncommon). Also capital gains are never taken into consideration in a IRA or 401k, and if you have muni bonds in a tax differed account your plans trustees and the adviser need to be fired.

Ryan d, I think you need to retake your licensing exams because the advice you gave is not correct. If you really are a registered rep I shudder to think what advice you have given to your clients.

To answer the question, if this is a 401k, and it sounds like one, you will have to withhold 20% for federal taxes (this is an IRS requirement) and will have to pay applicable income taxes on the amount withdrawn in the tax year they are distributed when you file your taxes for that year. If you end up owing more than 20%, and chances are you will with the 10% penality and your income tax rate, you will have to come up with any additional payments when you file your taxes.