401K question

Discussion in 'The Pub' started by rsm, May 27, 2015.

  1. rsm

    rsm Member

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    Are there any "hardship" clauses if you are under 55 and need to access your 401K that would not trigger the early withdrawal tax penalty? Good sources for information?
     
  2. rich-96db

    rich-96db Member

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  3. hobbes1

    hobbes1 Member

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    check with your 401k plan administrator. They will have the answers that apply to your situation.
     
  4. T Dizz

    T Dizz Member

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    Call them and ask. Do you already have a loan out with them?
     
  5. FFTT

    FFTT Member

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    My contributions were after tax, so if I needed to hit my account for something major, the sting wasn't too bad.

    You are only taxed on the company match portion and any profit on your contributions.

    Borrowing against your account is generally smarter.

    Index funds are way smarter than mutual funds that skim off your money, big time.
     
  6. rsm

    rsm Member

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    thanks! very helpful info.
     
  7. ShawnH

    ShawnH Member

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    The answer is pretty much no. If you need to withdraw tax-qualified money from your 401K prior to turning 59 and 1/2 then you are going to pay taxes plus 10% of the total withdrawal - which really sucks. The only exception would be disability - so if you have become disabled and cannot work then you can withdraw and only pay income tax on the withdrawal.
     

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