2007-06-12 04:34:15 · 4 answers · asked by amy t 2 in Business & Finance ➔ Personal Finance
You will have to pay taxes on that money you pull out PLUS a 10% penalty. You are talking about a 40% penalty for withdrawing that money. DONT DO IT!
Roll over the money into your new employer's 401k or into an IRA that you manage. Be sure if you roll it over into an IRA that the 401K manager sends the $$ directly to the IRA institution. You could have tax penalties if they send it to you.
2007-06-12 04:39:17 · answer #1 · answered by ? 4 · 1⤊ 0⤋
How old are you? If you are not up to the age to where you can remove the money from the 401k then you will have to pay penalty fees and then taxes on whatever you remove. That could be a lot of money lost just to pay off some bills. It is even more money if you figure that it will not be able to keep growing tax deferred in the 401k.
Leave the retirement account alone. Keep putting as much money in there as possible. You will be very thankful for it one day.
2007-06-12 04:39:08 · answer #2 · answered by A.Mercer 7 · 1⤊ 0⤋
Not unless you are over the age of 59.5.
Roll it all into an IRA and get on a budget to pay your bills off.
2007-06-12 08:05:53 · answer #3 · answered by derek 4 · 0⤊ 0⤋
NO. The penalties are HUGE for early withdrawal.. You'll have to pay taxes plsu a 10% penalty. Unless you are desperate with high-interest credit card debt and have no other option, it would be very foolish.
2007-06-12 04:38:43 · answer #4 · answered by Anonymous · 2⤊ 1⤋