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jimanne · Apr 8, 2007, 08:00 AM

After 37 years with same company, the company closed. I was laid off. I'm 57 yo
And I need money out of my 401 to help start new business (was in transportation and
Am about to open another trucking/transportation company.) What is the best way to
Access my 401k with the least amount of penalty/loss. I don't need all the money
Just some... (more than $50,000 tho).

gazelleintense · May 4, 2007, 05:57 AM

Early withdrawal you will pay taxes and penalties most of the time... I took out my $ 4 yrs ago when I was out of work. Used most of it... my 21 years working was basically for nothing now. Dumb move on my part. At 42, no chance of me retiring anytime soon. Still kick myself for this move.

If I were you, I'd get another job and leave the money or rollover into something like an IRA

gogosean · May 4, 2007, 08:21 PM

Originally Posted by jimanne

After 37 years with same company, the company closed. I was laid off. I'm 57 yo
and I need money out of my 401 to help start new business (was in transportation and
am about to open another trucking/transportation company.) What is the best way to
access my 401k with the least amount of penalty/loss. I don't need all the money
just some...(more than $50,000 tho).

There is no work around to paying federal and local taxes. The penalty can not be avoided. While some people would advise never doing this, there are longer term advantages to avoiding bankruptcy or paying higher interest rates on debt because you failed to make payments. Your credit rating has a lifetime cash value depending on the borrowing you do. If your credit is bad, it costs more to borrow money. The lifetime cost of having to borrow money at higher rates can offset the costs of early 401k. Do not follow a dogma, use all of the information you have at hand.