401k need to cash out?

Question

how much would i get if i cash in my 401k. I have 2,797 and im dead broke....I know its not a good idea but have no other choice

why do yo u think im paying for internet...ppl just answer the question at hand

Answer 1

How old are you? Everyone says don't cash it out, but you could end up paying more in bad credit and late fees if you do not get some money soon. They take a 10% penalty off the top and taxes.

I agree that people should just answer the question. I disagree that you should cut internet. Everything is internet from directions to monitoring accounts to email and research. I suppose you could just live in a homeless shelter for a while too in order to save money, but that would be unreasonable.

Answer 2

Hey when you cash out an 401k plan, you pay taxes est 25%
( your tax bracket) which if you use this you wont have to pay later when filing your taxes, because this is what I will be doing in april and if your under 59.5 years old an additional 10%. So with you having $2,797 in your 401k plan, if thats up to date you will receive $1,818.05. wow this is interesting 5 ppl marked the thumbs down.I am sorry if I answered the persons question it may not be 100% of the top of my head but it is very close. It is noted the person at hand knows its not an good idea but with no other options at hand it is an need.The person simlpy wants to know how much cash they will have 20 - 25% on taxes and a penatly of 10% if under 59 and a half is how it is setup. Please add comment on your answers to correct any inaccuarte info. Also whom said anything about the internet, there no mention of that in the question. This person could be on an computer at the local libary

Answer 3

Cashing out your 401k would be terrible, but if you don't have any money and you need some sometimes it is the only recourse.
If you are truly broke (making absolutely no money), you probably won't be hit that hard since you haven't any income. You'll get hit with a 10% penalty, that is it. Just ask them not to with hold taxes. that way you'll get about $2,500. Course if you are making some sort of income, then you'll end up having to pay in considerably at the end of the year.
As soon as you get back on your feet just make sure to dump in a pile, that way if it this situation happens again, you are a little more prepared. In fact, look at a Roth IRA that way you have access to the money you put in penalty free, it can then double as a psudo emergency fund.

Good luck bro

Answer 4

20% goes to the IRS. Plus a 10% penalty if you're under 59 1/2 years old. In many states another 5% or so might also be withheld for state taxes.

After all that is withheld, you should receive a check for somewhere around $1,818.

Answer 5

1818.05 i put you in a 25% tax bracket which might high!!!

Answer 6

if you want to cash our your 401k you need to either be a student or be home buyer. then there would be no penalty. I think are a few others but this is the easiest way.

Answer 7

You DO have other choices. Not paying your bills is a better choice. There is at least ONE unnecessary expense in your budget. You don't need Internet access.