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    chuyito's Avatar
    chuyito Posts: 2, Reputation: 1
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    #1

    Oct 2, 2009, 06:08 PM
    Withdrawal amount
    I checked with my employer and in order to borrow 1000 dollars, I have to have 2000 but I have been putting in my 401k for the past 2 1/2 years and not have been able to see it go over 2000 so whatever I can get from it including penalties and tax is all good.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 5, 2009, 07:13 AM

    I assume this is a follow up to:
    https://www.askmehelpdesk.com/retire...nt-402061.html
    When posting a follow-up to a previous question you should keep it in the original thread and not start a new one.

    It seems that your plan is pretty typical, in that the most you are allowed to borrow is 50% of the plan balance. If you borrow this money, there are no taxes or penalties owed -- this is one of the main advantages of borrowing form your 401(k) rather than taking a withdrawal. However, be aware that if toy reneg on repaying the loan (for example if you leave your job with a loan still open), the outstanding amount is converted from a loan to a withdrawal, and at that point you would owe taxes and 10% penalty.
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