withdrawing my 401k but tax will kill me.?
105394
IRA may not help to eliminate all the taxes. you can contribute only 4500(50+ age) towards IRA. Plus, after the age of 70 you cannot contribute towards IRA. Although there may be other optionsI do not see one
750454
Unfortunately they rushed to distribute the 401K to your friend. They 20% for the federal tax is withholding required because the check was sent to your friend. You friend will have to report the full amount of the 401K on his 2006 tax return. the withholding will be shown on his return just like withholding from a salary. \nYour friend will receive a 1099R in January reporting this distribution in his social security number.This form has a box labeled distribution code. The code should be the number 4 which is a distribution made because of death. This code keeps your Friend from having to pay the 10% early withdrawal penalty. If the code is wrong your friend will need to contact the company to have the code corrected.
320520
Absolutely though, you would need to check with a tax professional to determine whether the amounts deposited into your IRA are tax deferred or after-tax.  It all depends upon your income level.\n\nMax out your 401(k) contributions if at all possible. You're overall savings through the 401(k) far outweight the ultimate reduction in your "cash in hand" each pay check.
197563
No, you  had to pay a penalty for 2004 for taking out your 401 early. You just lost that money.
393236
It depends.  Do you have a Roth IRA?  You can use that money without a tax penalty.  A regular 401K through an employer will have some penalties usually.
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.
34718
It was explained to me that in the end the Roth is better you won't be taxed when you withdraw at retirement which will be worth a lot more than the benefit you get now for a tradional.  Of course you have to do what works best for you and your financial situation.  I would get started right away with which ever you do, it truly is never too early to start saving for retirement especially with SS up in the air.
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.
860338
401k money is meant for retirement, so unless you're rolling into another retirement account (i.e. IRA), then you will get penalized.  You might want to consider borrowing against your 401k, but there would be implications if you quit your job as most repayment for the loans from 401k accounts are automatically deducted from your paycheck.
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.
81277
If your company offers a 401K plan, take advantage of it.  They'll take out a fraction of you paycheck (as lo as 1%) and invest it in a mutual fund.  Many companies match your contribution, so that's like free money.  \n\nIf you just forget about it and just let it grow, you'll soon build up quite a bit of dough.\n\nIt's tax deferred, so that means you won't pay taxes on it until you cash it out.\n\nThe only drawback is you can't cash it out until you're 59 and a half without paying a penalty.
331983
you don't want to find that out. penalties and interest can get costly. if you did this i suggest you amend the return asap.
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.
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.
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
1098393
If using hardship withdrawals for other non-house purposes is not allowed by your plan, your action is a violation of IRS regulations.  Here are the possibilities.\n\n1)  You could be asked to immediately repay the $8,000, or possibly just the $4,000.  If you are unable to repay, it can be deducted from your wages.\n\n2)  It could be reported to the IRS as additional untaxed income, causing your taxes to go sky high.\n\n3)  If you are in a position of authority, and you refuse to correct the problem, the plan could be "disqualified", causing taxes on all the plan money for the whole company to become due.  As an alternate, the company may be liable for an initial excise tax of 15% of 4,000, and 100% of 4,000 for every following year unless it's corrected.\n\nDon't mess with your retirement plan.  It's REALLY bad news.
107410
No!! You should never take money out of your 401k for any type of bills. The only time you should ever consider it is to get out of a foreclosure. Get on a budget and spend every dollar. Starting with shelter, lights, food, and then gas for your car. Now you have your basics covered. Next list your debts smallest to the largest. Pay the minimum payments on the larger debts and pay extra on the smallest one. Remember in the cartoons when they dropped a pebble in the snow on the side of a mountain? You got a snowball that started to get bigger and bigger. That what you'll be doing if you start this way. You'll pay off one debt and then take that payment and apply it to your next smallest debt. Just repeat the process after you get that one paid for. You'll be out of debt in no time. Good Luck!!