how can i take money out of my 401k?

Answer 1

Your 401k probably has loan options - many of them do. Of course, you can only borrow against what you already have vested.

A loan is much better than a withdrawal, which will incur at least a 20% penalty on TOP of the taxes you must pay on that income.

Contact the company that holds your 401k or your HR dept. for details.

Answer 2

Take out a loan from your 401(k) account.
The interest you pay on the loan is credited BACK to your account for YOUR use in the future so its a win-win situation.

Keep in mind that every plan is likely to have slightly different rules so check these out before you make the committment.
For example, IF you must be currently employed with the employer who provides the plan, terms of the loan agreement may require that you pay the loan back in full immediately if you quit your employment.

DO NOT take an early disbursement (i.e., any cash out of the plan prior to reaching the required retirement age). This will (financially) cost you dearly.
You will be taxed immediately on the money (by way of an amount withheld PRIOR to your receiving the money) AND you will be significantly penalized by an additional percentage for taking the money early.
It's probably not worth the need you have in mind.

Answer 3

Depending on your employer, submit the proper paperwork with those who oversee the retirement plan.

Depending on your age, you will receive only 80% of the proceeds due to tax withholding. If you roll-over the entire balance within a 60-day period (if you have the 20% remainder in cash), then you can reclaim the tax withholding when you file.

Make sure you understand the law before submitting the paperwork.

-Ted

Answer 4

Contact your HR department for specific instructions (they vary alot). Find out the impact on your savings of loan withdrawls. Consider other options before deciding on a 401(k) loan.