Early Withdrawal After Tax Credit

[Guest jjc418]

If a participant takes an early withdrawal of their 401(k) plan after they terminate from a company (about $1,500), I know that there is a excise tax of 10%, are there any consequences for taking the retirement savings contributions credit on prior tax returns?

[ERISAnut]

No retroactive effect as I know of. But you would have a distribution which would seem to count against any future tax credit. That's from what I remember on the 1040 instructions pertaining to the credit.