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401K With draw

Asked Nov 27, 2006, 12:47 PM — 5 Answers
Ok I'm in a place I need money but have no job and don't know what I am doing in trying to get some money to put on a apartment with a friend and I need to know how to do a draw from the 401k for a start to a new life.

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mr.yet's Avatar
mr.yet Posts: 1,726, Reputation: 919
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#2

Nov 27, 2006, 12:48 PM
Contact the adminstrator of you 401k plan.
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Matt322's Avatar
Matt322 Posts: 3, Reputation: 1
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#3

Nov 27, 2006, 01:38 PM
Quote:
Originally Posted by Matt322
Ok I'm in a place I need money but have no job and don't know what I am doing in trying to get some money to put on a apartment with a friend and I need to know how to do a draw from the 401k for a start to a new life.

I don't have a job so I don't have a administrater
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ScottGem's Avatar
ScottGem Posts: 58,108, Reputation: 28145
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#4

Nov 27, 2006, 02:14 PM


If you have money in a 401K plan, then it had to be with a former employer. That employer is the plan administrator. You have to contact the human resources or benefits department of the employer for the forms and process.

I really urge you, however, to reconsider. Cashing out of a 401K is a last resort. You will lose 10% off the top, plus have the distribution added to your taxable income. Also, depending on the way the plan is run, a withdrawal may not be immediate. It could take anywhere from a week or so, to a couple of months.
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cpalmist's Avatar
cpalmist Posts: 137, Reputation: 187
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#5

Aug 23, 2007, 08:37 PM
Quote:
Originally Posted by Matt322
Ok I'm in a place I need money but have no job and don't know what I am doing in trying to get some money to put on a apartment with a friend and I need to know how to do a draw from the 401k for a start to a new life.
Call the administrator of your 401K plan and ask them how to get your money. My 401K is invested in stock so my deal is that I call and tell them to sell off what ever number of shares and disburse the cash to me - they will withhold tax is you are under 65 or 72 or whatever age it is these days and will tell you if there is a penalty for early withdrawal. The shares will sell at whatever the price is when you tell them to do a sell order on the shares.

It;s not a hard thing to do as it is your money but you do have to call to make it happen.

Rate my answer, if you please.
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nicespringgirl's Avatar
nicespringgirl Posts: 1,240, Reputation: 990
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#6

Sep 2, 2007, 11:12 AM
Read through your 401k plan information to determine possible loan options. Loans through your retirement account provide money for certain kinds of emergencies that can be repaid through paychecks over a matter of 5 years. These loans do not have the penalties or taxes associated with a regular withdrawal.
Use 401k withdrawals to pay for a down payment on your first home to avoid penalty. Down payments and closing costs for your first home falls under the Internal Revenue Service's definition of hardship for 401k accounts. Loans and withdrawals for home owners are given lenient standards by Congress to encourage housing expansion.
Good luck.
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