2007-04-04 10:36:26 · 5 answers · asked by Megan C 1 in Business & Finance ➔ Personal Finance
Some let you take a loan out...you end up paying yourself back with interest. There is no penalty for the loan unless you leave the place you work. If you take money out typically you have to pay tax on it and there is a penalty for taking it out ....In my 401 it's 10%
2007-04-04 10:41:29 · answer #1 · answered by margherita 4 · 0⤊ 0⤋
Last, last, last resort. As in don't do it. You can't take money from a 401(k) while employed at the company, you can only take out a loan on it. If you quit your job and take money out you'll pay taxes and a penalty.
2007-04-04 17:44:32 · answer #2 · answered by monger187 4 · 0⤊ 0⤋
While you are still employed you can take a loan out of your 401k, which you pay back with deductions from your pay. If you leave the company before the loan is paid off, you have 60 days to pay the balance otherwise it becomes taxable and you will incur a 10% penalty.
Under certain circumstances, you can take a hardship withdrawal, which they will deduct 20% from, of which 10% goes towards your penalty for early withdrawal.
2007-04-04 17:53:38 · answer #3 · answered by Mom of 2 4 · 0⤊ 0⤋
You receive a 10% penalty and you have to declare the amount you took out as income.
2007-04-04 17:54:09 · answer #4 · answered by Cisco Man 3 · 0⤊ 0⤋
Most places will only let you withdraw an amount if you fell on extreme hardship. You will face an early withdraw penalty fee which varies by company.
2007-04-05 00:11:12 · answer #5 · answered by Mariposa 7 · 0⤊ 0⤋