Should I cash in my 401k?

Answer by  NobodysHome (385)

If you are under the retirement age, you will pay severe financial penalties for cashing early, especially through taxes. You CAN build it up later, but you'll need a lot of self-discipline to start saving again if you're in a situation where you're tempted to cash it in early.

Answer by  Wolverine (42)

It is generally not a good idea to cash in your 401k as you will be responsible (assuming you have not yet reached retirement age) for paying taxes on the amount you withdraw along with a 10% penalty.

Answer by  tamarawilhite (17883)

This is a very bad idea. You will not only pay income taxes on the amount but also a 10% penalty if you are younger than 59 1/2. The income from this 401K may also bump you up to a higher income tax bracket. You could lose half the money there in taxes.

Answer by  Baobao (1273)

You had better start it as early as possible since it does good to your retirement and the fee is reasonable.It is a very good plan.