from the employ of where you built it. You want to take the whole 401(k) out for yourself because you want these bills payed completely off but if you do, you're considered officially quit of that employer. The job sucked but the benefits were fabulous. you've found a new job because they aren't going to call you back any how.
Would you take the money and quit or would you keep the money in the 401(k) building little in case they wanted you back.
2007-12-05 08:53:59 · 3 answers · asked by jacquie 6 in Business & Finance ➔ Personal Finance
$ 284,000 and my house is half that and I want to pay it off now
2007-12-05 08:55:37 · update #1
If you take the 401k and pay it toward your house you'll have to pay taxes on all of that money including early withdrawl penalties.
This is a very very bad idea!
You should either leave the 401k with your current employer, or roll it into an IRA for yourself.
Either way, you should leave the money alone until retirement!
2007-12-05 09:05:23 · answer #1 · answered by Stacia Z 3 · 2⤊ 0⤋
You can roll the money out of that 401k into another 401k or into an IRA. You cannot just go and take the money out to pay bills without incurring:
1) early withdrawl penalties (before age 59 1/2)
2) taxes (since 401k dollars go into the 401k plan before taxes).
2007-12-05 09:03:07 · answer #2 · answered by 2007_Shelby_GT500 7 · 2⤊ 0⤋
Very bad idea.
There are two reason to borrow or cash out a retirement balance:
Death and near death.
That's it.
Would you people PLEASE stop ruining your financial lives by making this very foolish mistake over and over and over again.
(Man, if only we could get old fashion pension plans back...)
2007-12-05 09:10:48 · answer #3 · answered by Anonymous · 3⤊ 0⤋