they are required to deduct 20% plus a 10% penalty. It is unlikely, if you have any other income at all, that you will not have to pay more come tax day. The

they are required to deduct 20% plus a 10% penalty. It is unlikely, if you have any other income at all, that you will not have to pay more come tax day. The 10% penalty does not count toward your tax liability, so really they only witheld 20%. I know if I did this right now, it would be closer to 40% for me. Plus the 10% penalty, so I would only get to use 50% of what I withdrew and stash 20% for tax day.