Can't you really take money out of your 401K/403b whenever you want?
95899
You work and earn $50k, and owe, according to your estimate, $15k in taxes. \n\nIf I asked you today if you would do a job for me that would take you several months to complete, for $50k and you could then get paid in one of two ways:\n1)$35k right when you are done, or \n2)$30k four years from now, plus 80% of what interest is earned between now and then (20% are the taxes on that portion)\n\nWhich would you choose?\n\nYou would be foolish to choose option 2. Obviously the circumstances that got you there are not the same, but indeed you would be choosing the equivalent. Think long and hard before you take a 10% penalty without flinching.
742987
Check with your HR or Benefits department, but generally speaking you can not cash out your 401(k) unles you seperate from service first.  The only alternative is a loan, but that could become messy if you wind up leaving before you pay it back.\n\nIf somehow your plan allows early distributions prior to retirement or seperation of service, then the other answers are correct.  If you receive a check directly from the plan, then by law they have to withhold 20% for taxes.  The entire distribution will more than likely be taxable (if you have after tax contributions, then you pay no tax on those) and you will be subject to a 10% IRS penalty. \n\nIf you meet one of the qualifying distribution exceptions for IRAs (first time home purchase, medical expenses, college expenses, etc...) then if you roll your 401(k) into an IRA FIRST and then take a distribution you may be able to avoid the 10% penalty.  You also control the amount that is withheld, so you may be able to keep more of your money.  Again, this is usually only an option if you're over 59 1/2 or if you seperate from service i.e. quit or change jobs.  But you may be able to keep more of your money.  You can open a rollover IRA at any bank, find one that DOESN'T charge a fee for the account.
76073
I agree somewhat with "melvin", BUT a company offering a 401k normally deposits money into the account of it's employees based on a percentage of their individual contributions.  For example, an employee elects to withhold 5% from each paycheck.  His employer matches the first 3% dollar for dollar, and then they pay 50 cents on the dollar for the next 2%, not to exceed 5% total contribution from the employer.\nOn the other hand, traditionally, a 403b is a retirement account whereby an employee deposits his own money through payroll deductions.  The account is an interest-drawing account, with no contribution from the employer.\nBoth the 401k & 403b are retirement accounts, and they are both important to anyone planning for the future.  One can transfer the balance of a 401k to a 403b or vice-versa.\nYou may also want to look into mutual funds, annuities, IRA & Roth IRA's, CD's, stocks and a handful of other types of retirement-oriented investment strategies.  Best of luck to you.
1021120
You need to get with the company that has your 401k and talk to them about getting out cash, every company handles things differently. There may be a penalty for doing so, and also you will have to pay a % to the IRS when you file taxes on it even if you have taxes taken out on the amount you remove. We did so last year and had to pay.
31570
Yes you can. Check with a financial planner and or an accountant though. Depending on your income you may not qualify for a deductible ira or a roth ira.
793313
Both 401K and 403B are vehicles for tax deffered saving plans.  403B are usually with not-for-profits organizations and are a little different but not by much.  These are money is not taxed until you take it out.\n\nIRA are Individual Retirement Accounts and the money that is put in has already been taxed.  \n\n401k and 403 b are from either your place of work.
867682
Federal law prohibits anyone from using a 401(k) account as collateral for a loan, except for a loan from the plan itself. Most plans allow for a loan of up 50% of your vested balance. However, unless you are being paid while on leave of absence, you may not be allowed to take a loan from the plan, because repayment must be done through payroll withholding.  If this is the case for you, then a hardship withdrawal may be your only other option. Others have noted that a hardship withdrawal is taxable and subject to to additional 10% early withdrawal penalty if you are under 59 1/2.
81711
There's no magic formula. It's just willpower. Put the money a little bit out of reach (a savings account, investment, anywhere away from your wallet and your checking account), and don't spend it.
725978
You can cash it in with a substantial penalty.\nYou can let it sit there and hopefully grow.\nYou can roll it over into a IRA\nYou can roll it over into another 401K\nThe part of it that YOU contributed through you\npay is always yours, The part that your employer matched (if they did) is "vested' over a period of time, so if you were there less than a year\nthe part THEY contributed they probably take back.\nif you were there 5 years, it's probably all yours also.
315452
If is a voluntary 401k plan, find out your company rules on taking it with you.  If it's allowed then do not withdraw the money to yourself. First find another organization that will take the tranfer - like TIAA_CREF - and transfer the money directly to them.   If the money is sent to your name you will have to pay a 10% penalty and 10 % Federal tax on it.\n\nIf its a company funded pension plan, you will have to wait until retirement age to collect.
1180526
No, you cannot withdrawl it without a 10% penalty plus ordinary income taxes (probably around 28%). My opinion....you would be beter off rolling that money over into an IRA and just save for a while to raise money for home improvement projects.
100055
Yes you can. Check out Equity Trust Company on the web. The ability to shield capital gains from taxes by using your IRA is an incredibly powerful tool.\n\nwww.trustetc.com
110431
put a little aside every day. i just took $5 out of my wallet everyday, before i left for work. if you do that for a week then you have $35. for a month that's $150. if you do it for a year then you have $1825. it may not sound like much, but it worked very well for me.
451079
Although legal, it is a bit of a scam.  It basically directs you to finance your life by leveraging core assets such as your home, your cash value life insurance and borrowing against your 401(k) savings.  All of these feature interest generating loan that is paid by you, but the interest goes back into the asset value.\n\nIt is a dangerous approach to investing by over-leveraging hard-earned assets.
808301
If you scr.w yourself by taking and closing ( to your hands) the 401k .you lose up to 40% of your money before you touch it. Then it can and will be Garnished for the full amount you owe. Can you say ZERO cash?\nLeave the 401k alone until you can open an IRA and directly rollover to it. NEVER touch the money - You lose. BIG Time lol
165091
No.  IRA's may not hold certain classes of assets and closely held corporations are one of them.  Likewise, if you happened to be the Chairman of IBM, you couldn't invest in that either.
972936
that is a very interesting question. i had to put some real thought into that one. but to be honest i would have to say yes that i would like to know. i invest 20% of my income to save for my old age. i have no children to leave any assets to. so if i knew i was going to die before the age of retirement i would know to quit putting money in the 401k plan at work. and it would give me time to sell my more valuable personal posessions rather than have them become the property of the government or some greedy relative that i have never liked. and also to do the things that i have always wanted to do like take a few weeks on a luxury cruise ship and go on a gambling spree in las vegas. and buy a dodge viper just to see how many sets of tires i can burn off in a week. and i am still fairly young, in my late 30s. so i have never made any burial arrangements for myself yet. but i could have a tragedy and die at any time, even if i knew i was going to pass away next week it would give me time to make some arrangements rather than put my parents through it.