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

    Oct 29, 2006, 01:19 PM
    Using 401K Withdrawal to offset debt
    Trying to save my two daughters has put me in a position to save myself and I have no other means unless I use my 401K. I know, it is all my fault. Is it against the rules to use your withdrawal (hardship) for this means? Do many people do it? If I am willing to pay the penalties and taxes - wouldn't it be better than bankruptcy?
    Thanks - I need all of the input I can get. I know - I am stupid.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #2

    Oct 29, 2006, 01:32 PM
    Everyone's situation is different, the amount of your debts, the types and the reasons can all effect a choice.

    Is there ways your daughters can now help you ?

    Is there better budget that could help

    So a discussion with some professionals with your exact details could be helpful
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 early withdrawal by non-resident [ 18 Answers ]

Hello I was working in the US until July 1st of this year (and since 2003). Ever since I have been living and working in the UK. I had earned about $46000 gross in my previous company in the US in those 6 months. I have about $20000 in my 401K account. I was planning to transfer all my 401K...

401K early withdrawal [ 15 Answers ]

I have a 401K question about early withdrawel. Actually, let me give you a scenario: 401K balance - $28000.00 I have the understanding that 20% is immediately taken out for federal taxes with an early withdrawel, which would be in this case $5600.00, and that would make the distribution...

401K Early Withdrawal [ 1 Answers ]

My company was purchased by another company that has established a new 401K. I have not yet done anything with my previous 401K. I would like to take the cash from my previous 401K and pay off my son's school loan. If I use the money to pay of the education loan, I know I will have to pay taxes...

401K early withdrawal [ 5 Answers ]

I have been laid off due to a work injury. To survive I must cash in my 401k, but I am trying to avoid the early withdrawal penalty. I have not yet been declared disabled but am currently pursuing this. Our family taxable income is only 26,000.00. I am currently receiving workman's compensation...

401K Early Withdrawal Penalties? [ 11 Answers ]

Hello. I have a question about early withdrawal of my 401k due to changing employers. I am fully vested at my current company. I took a loan out from my 401k probably 6-8 months ago for personal reasons (not mortgage, etc.). Here are the details for that: I took out a loan of $2,868.01 and...

View more questions Search