2007-09-18 05:26:43 · 6 answers · asked by paulthegolfman 1 in Business & Finance ➔ Personal Finance
Under normal circumstances you can cash out without penalty at 59-1/2 years of age. If you use the money for school, a first mortgage, or hardship there may be exceptions. However, you will always have to pay taxes on the money you take out.
It is best to let that money alone until you are a senior and look for other ways to get needed funds, perhaps a home equity loan that would be tax deductible.
2007-09-18 05:38:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As ck mentioned, you can only cash out for certain conditions, but some companies require that what you take out is in the form of a loan and must be repaid back into the account until you are at the retirement age: 59-1/2 to 62 yrs. You would need to find out from the company's information on the plan. Your HR department usually has information on this or at least how to go about it.
2007-09-18 05:46:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
At age 59 1/2.
2007-09-18 05:45:49 · answer #3 · answered by Lisa A 7 · 0⤊ 0⤋
No. The "situation" provisions in 401k/403b plans provide help to get right of entry to to the money yet they do no longer alleviate any of the taxes or consequences. There are actually not any exceptions to pay the tax and there are some exception to paying the ten% penalty yet dropping your place isn't one in all them.
2016-12-26 16:46:02 · answer #4 · answered by ? 4 · 0⤊ 0⤋
There are certain conditions such as a first home purchase. However you still need to pay the taxes on the amount as annual income. If your need for funds is temporary a loan may be better than a withdraw.
2007-09-18 05:41:30 · answer #5 · answered by VATreasures 6 · 0⤊ 2⤋
1) Death
2) Full Disability
Neither of these I recommend.
Most of the exceptions (first house, school) apply to IRAs only; not 401k's.
There are a few exceptions for 401k's (Reservist, Hurricane) but these are pretty rare.
2007-09-18 05:51:53 · answer #6 · answered by Wayne Z 7 · 1⤊ 0⤋