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    wsmith3460's Avatar
    wsmith3460 Posts: 1, Reputation: 1
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    #1

    Nov 20, 2007, 12:10 PM
    Age 591/2 can I take my 401k money
    Without being taxed
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #2

    Nov 26, 2007, 11:16 AM
    You can take your money all right, but you will have to pay taxes on any withdrawals of money that you didn't already pay tax on - for most 401(k) participants this means that you pay ordinary income tax on virtually the entire amount of the withdrawal (the exception is if you have any "after-tax" money in the plan). The good news is that because you are 59-1/2, you will not have to pay any additional penalty for early withdrawal.
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    scheryl Posts: 1, Reputation: 1
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    #3

    May 25, 2010, 04:50 AM
    I'm 63 and I have a 401k . I was thinking of cashing it in so I could pay off an credit card and get it out of my mind. Do you think this is a good ideal?
    dcamp's Avatar
    dcamp Posts: 1, Reputation: 1
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    #4

    Jun 4, 2010, 02:01 PM
    Would it be wise to use 401k money to pay off high interest debit
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #5

    Jun 7, 2010, 05:57 AM
    Quote Originally Posted by dcamp View Post
    would it be wise to use 401k money to pay off high intrest debit
    How old are you? Specifically, are you either 59-1/2, or do you have a 401(k) with an employer you left at age 55 or later?
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    part64 Posts: 2, Reputation: 1
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    #6

    Jun 28, 2010, 04:52 AM
    I am 64 1/2 I am on partial SS and want to know if I will pay any penalty on taking my 401k to pay off a high interest debt or credit card?
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #7

    Jun 28, 2010, 05:55 AM

    Part64 - you will not have to pay the early withdrawal penalty, as you are over age 59-1/2, but you will have to pay ordinary income tax on any withdrawal - both federal and state/local (if applicable where you live).
    Amyruth's Avatar
    Amyruth Posts: 3, Reputation: 1
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    #8

    Jun 18, 2011, 08:05 AM
    Can you make partial withdrawal after 59 1/2?
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    Amyruth Posts: 3, Reputation: 1
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    #9

    Jun 18, 2011, 08:10 AM
    Can you make partial withdrawal after 59 1/2?
    Amyruth's Avatar
    Amyruth Posts: 3, Reputation: 1
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    #10

    Jun 18, 2011, 08:11 AM
    Can you make partial withdrawal after 59 1/2 without hardship and without cashing out, and not a loan
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #11

    Jun 20, 2011, 05:49 AM
    Quote Originally Posted by Amyruth View Post
    Can you make partial withdrawal after 59 1/2 without hardship and without cashing out, and not a loan
    If you are still an active empoyee it depends on the terms of your 401(k)plan. Some plans allow active employees over age 59-1/2 to take a partial withdrawal, but many do not. Ask your plan admin what the rules are.

    If you are no longer with the company then yes, you can take a partial withdrawal at any time. Being over 59-1/2 means you won't have to pay the10% early withdrawal penalty. But of course you will have to pay federal income tax plus state/local income tax (if applicable).
    caugust's Avatar
    caugust Posts: 1, Reputation: 1
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    #12

    Oct 22, 2011, 08:22 AM
    I need help.. I am losing money from my 401k.. will retire at 66 am 63 now.. I want to pull all my money out
    And put in a savings account.. will there be any taxes,fee,or penalties.I don't have time to let the amt grow and I can't keep losing money.. help
    I live in ct
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #13

    Oct 24, 2011, 05:48 AM
    caugust - as noted in the earlier posts in this thread your plan may not allow you to make a withdrawal since you are still an active employee. Some plans allow active employees to make withdrawals, but many do not. So you need to ask at work whether you can take a withdrawal or not.

    If you do take a withdrawal my suggestion is to make a direct rollover to an IRA. That way you won't owe any taxes on it. You can easily find an IRA investment that will be very conservative - similar to a savings account. Of course it won't yield much, but it will be safe. If instead of a direct rollover you actually take a cash withdrawal from your 401(k) you will owe income taxes on it - federal as well as state/local (if applicable where you live). That's why if you don't need the cash right now it's better to do a rollover to an IRA.

    However - if finding a safe investment is all you're concerned about have you looked into all the investment optins that your 401(k) plan has to offer? Most plans include some pretty conservative investement options - something like T bills, or just plain cash. Since you apparently don't need the cash right away simply changing investments in your existing 401(k) plan would be the easiest thing to do.

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