Ask Experts Questions for FREE Help !
    Homie's Avatar
    Homie Posts: 3, Reputation: 1
    New Member

    Nov 7, 2006, 04:13 PM
    Closing a 401k account
    HI. I'm on a Leave of Absence from my place of employment. I need money and the only source I have is my 401k... I took a loan out earlier this year, from the 401k, not knowing I could only have one loan out at a time. So now I feel my only option is to close the account and take whatever is leftover after taxes... Can I do that? Do I need the companies permission? Thank you in advance for any help
    posheak's Avatar
    posheak Posts: 51, Reputation: -1
    Junior Member

    Nov 13, 2006, 12:47 PM
    No its yours, you'll just take the big hit 10% penalty and its taxable income when you take it out.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Nov 13, 2006, 01:03 PM
    If you can temporarily borrow enough to pay off the existing loan, you can then take a larger loan to pay off the temp loan.

    Taking an in service withdrawal from a 401K is a very last resort. The penalites and tax consequences are hefty.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Closing a bank account after a jugement lien has been issued [ 16 Answers ]

I am a debtor who had a creditor issue a judgement against me. They put a judgement lien against my 3 bank accounts (at the same bank). Two had nominal money in them & one had a $0 balance. When I woke up this morning I could see the account was at $0 yet my funds available showed the amount of...

Closing [ 2 Answers ]

Hello my question is how long can I stay in my house after the closing I will need to make arguments to travel to my new house in another stats I waiting on the money I get from the closing to move basically thanks again Janet

Closing entry [ 1 Answers ]

At the end oa an accounting period, lackawaxen co. has the following account balances listed on its Adjusted Trial Balance: Sales revenue $100,000 Cost of goods sold $50,000 Administrative earnings: $25,000 Retained Earnings: 250,000 Assume there are no other revenue...

View more questions Search