Can You Cash Out Your 401K?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaYour 401(k) plan is established by your employer. There is a document that states what you may do with the funds in the separate accounts. The document will tell you at what point the contributions by the employer become yours. The document might provide opportunity to withdraw some of the funds for specific purposes. The plan’s permission to withdraw doesn’t diminish your responsibility to pay tax on the money withdrawn including penalties if you are less than 50.5 years old.Answered on August 18, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! You can, but the question is do you really want to? In many cases, you will lose a substantial amount of the funds' value by doing so, either through loss of unvested contributions, penalties, or from the income tax that is assessed. Those losses can be really steep, up to a third of the value of your fund. If you need to get your hands on some fast cash, try borrowing from your life insurance, or selling something before gutting your future, ok? Please drop me a line if you need help, ok? Thanks for asking!Answered on August 22, 2014flag this answer
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