Can I draw money from my 401k?

Answer by  Karen54 (971)

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.

Answer by  BillT (172)

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.

Answer by  Gabriel (2146)

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

Answer by  DouglasEarlClore (1236)

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.

Answer by  tamarawilhite (17883)

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 This will cost 30-50% of the funds withdrawn.

Answer by  comalua (27)

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.