Ask Experts Questions for FREE Help !
Ask
    dc10362's Avatar
    dc10362 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 23, 2007, 07:38 PM
    With draw 401K funds
    I would like to know how do I request money from my 401k funds. I am behind on mortgage payments and I would like to pay off credit card debit.:(

    How do I write my request letter?
    Thank You.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Aug 24, 2007, 06:05 AM
    Call the administrator of your 401(k) plan to find out how to do this.

    If you are still employed at the firm where your 401(k) is located, inquire about taking a loan from your 401(k) as opposed to making a withdrawal. This avoids the 10% penalty, and keeps you in the plan. You effectively borrow from yourself.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Aug 24, 2007, 06:19 AM
    Your 401K is a retirement nest egg. It is NOT a savings plan for use in emergencies. A withdrawal may incur a 10% penalty plus will be taxable income for the year.

    A 401K loan is generally made at low interest plus the interest goes back into your account, not to your company or the plan admins.

    You would however, qualify for a hardship withdrawal if the money would be used to stave off foreclosure.

    Bottom line is you need to talk to the plan admins.
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!

Probability on raffle draw. [ 13 Answers ]

Hi can anyone help, I have put all the birth dates from the last 75 years in draw and twice a day I pick a winner. Assuming I have 22000 members of which 400 visit my establishment every day-you have to be in the building at the time of the draw to win if not it rolls over. Can anyone tell me what...

401K With draw [ 5 Answers ]

Ok I'm in a place I need money but have no job and don't know what I am doing in trying to get some money to put on a apartment with a friend and I need to know how to do a draw from the 401k for a start to a new life.

Moving 401k funds to rollover IRA while still employed at the same company [ 2 Answers ]

Hi, I was told that you can withdraw your retirement funds and then get them back in within 60 days and not have to pay any penalties. If this is correct, does this mean that I can withdraw my 401k funds and move them into a rollover IRA within 60 days without any penalties? Thanks in advance...

Just LOVE to draw... [ 7 Answers ]

Okay, Im 20, just left my job due to problems. I was a secretary (borrrrrring!) I've always has a passion for drawing, painting (mainly abstract, surreal, whatever) and I've been told I really have a gift ;-) So now I'm just a bit confused as to where to go from here. I'd love to express my...

Flash How to draw a stickman? [ 9 Answers ]

How do I draw a stickman and animate him? Is there some kind of bones in flash??

View more questions Search