If I elect to take a 401K in cash, can it be taken by the government if I owe on a student loan?

Question

I had a portion of my paycheck garnisheed when I worked and my income tax was also taken.

Answer 1

If you scr.w yourself by taking and closing ( to your hands) the 401k .you lose up to 40% of your money before you touch it. Then it can and will be Garnished for the full amount you owe. Can you say ZERO cash?
Leave the 401k alone until you can open an IRA and directly rollover to it. NEVER touch the money - You lose. BIG Time lol

Answer 2

enable's get one element rapidly: Federal tax isn't withheld from 401k distributions consistent with tax brackets! in spite of what tax bracket you're in, 20% would be withheld for federal taxes and one greater 10% would be withheld for a penalty while you're no longer yet age fifty 9 a million/2. State income taxes is additionally withheld in case you reside in AR, CA, DE, IA, KS, MA, MD, ME, NC, NE, ok, OR, VA, or VT. in any different case no state income taxes would be withheld on the time of value. yet... once you document your taxes, you may desire to contain the $18,500 as area of your taxable income. If the federal and state taxes that have been withheld on the time of value are not adequate, you will owe extra taxes at that element. So... enable's assume you do no longer stay in between the states indexed above. if so, you may acquire a verify for $12,950. something could be withheld for taxes and the penalty, if any.

Answer 3

Probably. But worse yet, you will have to pay taxes on the entire amount, and if you are not over 59 1/2 years old, they will take 20% of your 401K before you get it. Hooray for our government and their tax laws!!

Answer 4

you can get from many types of student loans. it wil help you hope
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Answer 5

i think so, if they find out before you get the money.

Answer 6

i would plan for the worst case