Can I cash in a profit sharing/401(k) plan?

Question

i work at wal-mart and have a profit sharing and 401(k) plan. On my paperwork there is a total market value and a vested balance. I need to get some money to pay a company that is threatening to sue me and was wandering if it's possible to take out a certain amount and if so what are the penalties? I really don't understand how all this works any advice would be helpful!

Answer 1

you cannot take the cash out unless you are no longer working at Walmart. You may borrow against your 401k but only for first time home purchases or medical bills and death related issues.

Talk to your HR department or 401k plan. Is free and won't cost you any more money.

Good luck

Answer 2

Are they matching anything? If so I would put in the most that they will match because it's free money. A lot of companies will offer 25 or 50 cents on each dollar you put in up to 5% of your pay. It would be foolish not to put in the full 5% because you are making 25 or 50% regardless of what the market does. Look at it this way....if I said for every dollar you give me I will give you $1.50. But the limit of dollars you can give me is 10. How many dollars are you going to give me? 2? 5? 8? or all 10? This is what a lot of people don't understand and I don't know how to explain it any clearer. Now if the company is not matching anything and all they're doing is putting it in the 401k fund for you then that's a different ballgame. You might be better off paying off debt or whatever. But then again the market is very low right now and it might not be a bad idea to take out as much as you can afford. There are tax advantages too to keep in mind. It really depends on the company match and your curent financial situation and the market.

Answer 3

check with your personell or benefits people at work.
you can cash in all or part but you would have pay a penality plus taxes to the feds and tax to the state.
Many companies allow you to barrow up to half of your 401-k and repay it as you wish. this would be better. and the payments would come out of your check weekly., or bi-weekly/monthly.
It is not exactually a loan. they sell part of your shares and you indicate which plan in your 401-k you want to take the loan from. Your 401-k will show us short the amount of the loan. As you repay the (so-called loan) loan the brokage company handling your accounts buys that amount of shares back. This loan allows you to get the money with out paying taxes yet or being penatilized by the Irs. They will charge you an interest fee but this should be put back into your account as you repay the loan.

So you are not really barrowing money from your 401-k using it as collateral. you are selling part of it which you would rebuy as you pay the loan off. Another trade off is if the shares are high when you make the loan, than are ok and may even be buying the same shares back at a cheaper price. But if shares (walmarts for example) are lower than you payed for them you woould be losing money as when you buy back they price will increase.

Answer 4

Don't do it. You can borrow or withdraw up to half of your vested interest. If you borrow against it, you have to pay it back. If you withdraw it, you will have to pay a 10% penalty and pay income tax on it.

You should look into settling for less or filing bankruptcy. At least discuss the options with a good lawyer.

Answer 5

1

Answer 6

Wal-mart Profit Sharing

Answer 7

401k were designed for retirement. If you take money out before age 59 1/2, you are subjected to taxes and penalties.

Now, if you have 401k from previous employers, you can roll it over into a Traditional IRA.

Answer 8

what is the walmart profitsharing number to cash out

Answer 9

yes you can.....with penalties

Answer 10

More info please.