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

    Oct 23, 2008, 12:40 PM
    401K Withdrawal
    Hello,

    I need to withdraw my 401k and I have a loan attached to it. Can the provider deduct the loan and send the difference? I am aware of the penalties attached to early withdrawal.

    Thanks,
    FacMgr
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Oct 23, 2008, 12:45 PM

    If you liquidate your entire plan then any outstanding loan balance will be deducted from the total plan value. However, your tax liability and penalty will be based on your total plan value which includes the outstanding loan balance.

    This is really NOT a good idea. I don't know your circumstances, but you would be throwing away a LOT of money.
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!

401k withdrawal at 59.5 [ 6 Answers ]

I would like to cash out my 401k. I am 60 years old. What kind of penalties will apply? Or would a loan against the money be better?

401k Withdrawal [ 10 Answers ]

I am looking to quit my job to be a stay at home Mom and take a withdrawal out of my 401k. I have $72K in there and I would like $30K of it. How much extra should I take out to account for the initial tax penalty PLUS the hit at tax time next year??

401k withdrawal [ 3 Answers ]

How much income tax would I have to pay on $5000.00

Hardship withdrawal for early withdrawal of 401K [ 0 Answers ]

I am, 56 years old, live in the State of Florida, and just lost my job. I have a small 401K ($6,000) with this company and want to withdraw all of it and put it in a savings account to help tide me over until I find another job. I know I will be charged a 10% early withdrawal fee, and I also...

401k WITHdrawal [ 18 Answers ]

Hi, I'd really appreciate some help. :) I lost my job a couple months ago, and took a withdrawal out of my 401k to help survive. Can anyone tell me exactly how bad the taxes will be on it? I will have some deductions to use, but honestly don't know how much that will help, or hurt me? Thanks...

View more questions Search