What if you want to get money out of your 401k, but you don't want it to be a lo

  1. profile image44
    sherdumposted 7 years ago

    What if you want to get money out of your 401k, but you don't want it to be a loan? Can you do that?

  2. Hub Llama profile image64
    Hub Llamaposted 7 years ago

    That depends mostly on whether or not you still work at the company. Most 401k plans restrict withdrawals until you are "separated from service," which is a fancy way of saying that you quit or got laid off.  Otherwise, you may be able to get something called an in-service withdrawal, but that is plan specific and the options may be limited.

    Either way, if you aren't 59 1/2, you'll pay a 10 percent penalty and you'll pay regular income taxes no matter how old you are.

 
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