Is there a way that you can withdraw money from your 401k while you are still employed with the company?

Question

i know about loans, but is there any other way? i am experiencing financial difficulty, but i don't fit into any T Rowe Price's categories of "financial hardship". Can i roll my funds over into an IRA, then withdraw??? HELP!

Answer 1

go to hr an and tell them to put your 401k on hold -- that will give you 10% more in your paycheck next payday -- than downsize you life style -- do anything but don't touch the the money in the 401k plan!!!

Answer 2

No. ERISA the guidelines governing 401k plans prevent u from rollover over while employed unless it is a prior rollover, 59-1/2 or some employer money they allow u to withdrawal (check the summary plan document for the details, but very unlikely). To answer 2nd question. Yes u can rollover as much as u like but is that truely a wise decision, depending on the amount u roll. This money then becomes taxable. If we r talking 5000.00 maybe not a big deal but if u r talking 50,000 then that amount added to your other income may throw u into another tax bracket. Check with your tax guy.

Answer 3

I know you said you don't want to do loans, but it would be a lot better than withdrawing from your 401k. The penalties are not worth it. How's your credit? You can try getting a credit card for absolute necessities. But make sure to pay on time every time. Go to capitolone.com. After 3 months of timely payments w/o going over your credit limit, they will raise your limit. Just make sure you're careful so that you don't make more hardship for your future.

PS--Capitol One is very easy to get a credit card with.

Answer 4

Depending on company policy, you may not be able to withdraw at all. You can't roll it over either unless you leave your job.

If you were able to withdraw, you would have to pay a 10% penalty for early withdrawal. Then, of course, you would have to pay income taxes on the funds.

You probably can stop your contribution.

Answer 5

it depends on a lot of factors and the type of 401(k) you have. Your hr department would have all the information on it. But you normally cant circumvent the tenants of the 401 (k)

Answer 6

if you do this, there will be humoungous penalties to pay come tax time - like you'll owe thousands of dollars when you file.
Unless you'll be prepared for that when April 15th rolls around I wouldn't recommend it, like the previous poster said, unless it's life or death circumstances.

Answer 7

bad idea. unless it's life threatening, don't touch the 401k money for any reason.

Answer 8

you can borrow against it but the penalty is HIGH HIGH HIGH like 30%, you are better off leaving it alone