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    aaron8375's Avatar
    aaron8375 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 23, 2006, 12:05 AM
    Cashing out a 401k with a loan
    I currently have a loan I am paying back to my 401k and am thinking about cashing out, but I'm not sure if this is possible or not. This might not be a good idea because I'm guessing the loan would be considered part of that cash out, which means I'd be paying taxes on money I won't even be seeing (because I already have it out).

    I just thought I'd put this question out there, I'd prefer not to cash out at all but I'm in desperate need of the money.

    Also, if I do decide to cash out about how long does it take to get the money?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Sep 23, 2006, 05:19 AM
    Taking money out of a 401K should be considered a very last resort. If you do, any outstanding loan balance will be considered a withdrawal, subject to tax and penalities.

    How long it takes to get a check depends on your plan. It could be a few days to a few months.
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