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    dc10362's Avatar
    dc10362 Posts: 1, Reputation: 1
    New Member

    Aug 23, 2007, 07:38 PM
    With draw 401K funds
    I would like to know how do I request money from my 401k funds. I am behind on mortgage payments and I would like to pay off credit card debit.:(

    How do I write my request letter?
    Thank You.
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307

    Aug 24, 2007, 06:05 AM
    Call the administrator of your 401(k) plan to find out how to do this.

    If you are still employed at the firm where your 401(k) is located, inquire about taking a loan from your 401(k) as opposed to making a withdrawal. This avoids the 10% penalty, and keeps you in the plan. You effectively borrow from yourself.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Aug 24, 2007, 06:19 AM
    Your 401K is a retirement nest egg. It is NOT a savings plan for use in emergencies. A withdrawal may incur a 10% penalty plus will be taxable income for the year.

    A 401K loan is generally made at low interest plus the interest goes back into your account, not to your company or the plan admins.

    You would however, qualify for a hardship withdrawal if the money would be used to stave off foreclosure.

    Bottom line is you need to talk to the plan admins.

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