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    Uhretha47's Avatar
    Uhretha47 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 27, 2012, 12:49 PM
    Taking out a little from my 401(k)?
    How would I take out 1000.00 from my 401 for car expenses because I need a car to get back n fourth to work
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Mar 27, 2012, 01:23 PM
    I would advise seeing if you can take a loan from your 401(k). You need to talk with your plan administrator to see whether they allow in-service withdrawals or loans. We can't help you there.

    But if you need $1000 you will need to withdraw more than $1300. The plan will withhold 20% for federal taxes. But it may be you owe more than that. In addition that doesn't cover state taxes. Also, you will pay a 10% penalty.

    If you take a loan, the loan payments will directly and completely go into your account. So you will be paying yourself interest and increasing your savings.
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