I am 56 yrs old, bought a home with my daughter and three grand children, her husband moved out and I was stuck with all bills and all mtgs. I changed jobs in order to hopefully earn more money. I cashed out my 401k 16k to try and keep my home, we were forclosed on and have had to move to another home, couldn't affored that one either when my daughter lost her job now in apts and earning 1/2 of what I did before. I need info on hardship withdrawl? Please, I have no money to pay taxs as I am helping raise my grand children and daughter with rent and utilities on two apts and other bills. I have ruined my credit through all of this. Ex husband not willing to pay anything for the children's care and daughter working for $8.50 an hour. She gets no help but from me.

First, she is entitled to support from the husband. Has she gotten a support order from the courts? Has she gone back to court to enforce it?

Second, I thought you cashed out your 401K, so what early withdrawl are you referring to? Since you are 56, you caqn take a distribution without incurring the 10% penalty. But you will still have to pay taxes on the withdrawal.

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Originally Posted by ScottGem

Since you are 56, you caqn take a distribution without incurring the 10% penalty.

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This is true ONLY IF you leave employment in the company where the 401(k) is located in the year you turn 55 or older. If you leave the company when you are, say, 52 years old and then take a withdrawal when you are 56, the 10% penalty is still due -- you would have to wait to the year you turn 59-1/2 to take a withdrawal without the penalty.

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Originally Posted by ebaines

This is true ONLY IF you leave employment in the company where the 401(k) is located in the year you turn 55 or older. If you leave the company when you are, say, 52 years old and then take a withdrawal when you are 56, the 10% penalty is still due -- you would have to wait to the year you turn 59-1/2 to ak a withdrawal without the penalty.

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Good catch, I was assuming this was recent (he did mention changing jobs).