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Can I draw money from my 401k?

asked by Charlotte (73)

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Tags:  finance

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The short answer is yes, but there are hefty penalties if you are younger than 59.5, even for so-called hardship withdrawals. Check with your benefits department to see if you qualify for a loan. You would then pay yourself back the principal and interest.

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posted by Karen54 (805)
11 votes

Yes,but it is costly. In addition to the interest you will pay on all the money you withdraw, the IRS charges you a penalty for early withdrawl.

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posted by BillT (166)
6 votes

Depends on your plan. Some permit loans, others only allow hardship withdrawals. Your loan administrator can give you specific details.

6 votes

Yes, but in many cases you will face taxes, and also penalties for early withdrawal if you are not at least 55 1/2 years of age.

6 votes

You can pull money from your 401K. However, if you are below the retirement age, you will have to pay taxes on the money pulled out AND a 10% penalty. This will cost 30-50% of the funds withdrawn.

5 votes

Yes, you can typically(depending upon the employer plan) draw money from your 401k. But bear in mind that you will have tax implications. Speak with a tax professional first.

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posted by comalua (17)
5 votes

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