Early Withdrawal

Archive for the ‘401k Withdrawals’ Category

Question: Should I take out money from my 401k to pay for mortgage points?

I plan on purchasing my dream home and will most likely stay there to pay off the cost points will cost, however if I take out 10K from my 401K I am taxed the 10% penalty for Early Withdrawal plus I am in 25% tax bracket. So at the end the 10K becomes 6500. That is roughly how much my points will cost to get my interest rate to 4.5. Not sure in the long run if I’ll save money if I stay in the house for the life of the loan 30yrs??? Any thoughts?
I also found out that points are tax deductible, so that may offset the tax penalty I will receive from the Early Withdrawal??

Answer: if you are still employed at the company you have the 401k with, you can;t “take out money” at all. – it’s not like an IRA.

points are actually deductible, so you can’t compare that to the lost money – why don;t you look for a loan without points?

you can borrow from your 401k plan – no taxes or eraly withdrawal penalty

www.getbargainhouses.com/rentoown

Question: 401k Early Withdrawal?

I’ve decided after going from 30k to 20k over the past year even while contributing, i am going to withdrawal completely from the 401k program. Not rolling over, and not filing hardship. Just withdrawaling. How much of a penalty can i expect to pay? Thank you!

Answer: 10% Early Withdrawal fee plus ordinary income tax.

401(k) Questions & Hardship Withdrawal Video | Bills.com

Question: Better to withdraw funds from a 401K or IRA?

Assuming you can withdraw early from an IRA account.

Answer: Neither is good to withdraw from. You are looking at about 40% in fees and penalties. And if you loose your job (where the 401k) is at and you haven’t paid back the loan, the government will assume you did an emergency withdraw.

I urge you to try and scrimp and save for what ever your emergency is (or ask for a payment plan with what you need to do).

Will Your 401k Be The Next Victim of Failed Government?