i can take the money out of my 401k to pay off my credit cards, i am only 22 and have like 5000 in my 401k and thats exactly what i need, and how whould i go about taking that money and how much do they tax since of course i am no where close to retirement
2007-07-26 09:07:53 · 2 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You can- but I would advise against it- you will be taxed heavily on it, and you have a great base to start from at 22- trust me- I look back now and wonder where all the great $ I was making in 20's went, I had that head start then, and pissed it away (speaking for myself-not saying that's what you're doing) I know it's the least fun thing in the world- but I say put your credit cards in ice-literally- pay them down as much as you can, cut back on any "extras" or fun stuff (I know it sucks!!) until they're manageable-and treat that 401K as exactly what it is a LOOOONNG term investment- forget you even have it- you're 60-70-80yr old self will thank you for it.
Hate to sound like a nag- but you can do it without the $ for your future- good luck!
2007-07-26 09:25:44 · answer #1 · answered by ♥♥justme♥♥ 3 · 1⤊ 0⤋
Check with your HR Manager. Some plans allow people to borrow from their plans.
2007-07-26 16:16:55 · answer #2 · answered by hottotrot1_usa 7 · 0⤊ 0⤋