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

    Apr 24, 2005, 07:57 AM
    Cashing out 401K
    I am 49 yrs old with a 401k sitting in a previous employers plan
    (about $70k) and thinking about cashing out to eliminate the debt that I have ($30K from consolidation).
    I don't see any other way to get out from under it. I know the consequences of doing it; penalty, taxes, lost future income. Any ideas?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 2, 2005, 07:16 AM
    NRoberts:

    Just to make sure you understand: The tax load could be as high as 50%, and will be at least 35%.

    Have you considered bankruptcy? The law just changed making it harder. But it has not gone into effect yet.

    Contact the local office of the Consumer Credit Counseling Service (you can find the local office by accessing their website at www.nfcc.org). They will help you explore all your options before you cash in your retirement savings.
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!

Cashing out 401k [ 5 Answers ]

I have recently quit working and am considering cashing in my 401k. Approx how much will I loose compared to rolling it over into a ira and then cashing that in?

Cashing out a 401k with a loan [ 1 Answers ]

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...

Cashing in 401k [ 3 Answers ]

I have major amounts of debt. I am currently looking towards relocation. My question is.. If I cash out my 401k what is the penalty? Do I pay taxes on it upfront or at the end of the year? I declared bankrupcty once and unable to do it again. Lately this seems like me only other option. Any info...

Cashing out 401k [ 1 Answers ]

I am moving to Australia from the US next year and wish to cash out my 401k. What penalties would I pay. I am not retirement age.

Cashing in 401k penalty [ 0 Answers ]

In 2002 I cashed in a 401k and received about 14,000. I knew about the taxes but didn't know for sure I would receive a penalty because everything I read said I "may" and I figured they would let me know... anyway, I owed the IRS 1,800 and they put me on a pmt plan of $25 to federal IRS every month...

View more questions Search