My 401k is losing thousands every month and my employer wont allow me to close my account or withdraw anything.. they will only allow loans... so Im sitting here, completely hopeless.. watching my life savings sink and there's nothing i can do about it...
Can you switch the 401k to the savings account option, rather than the one rather than the one tied to the stock market? My husband’s is a savings account and, while it’s a slower growth, it didn’t lose money in the last crash like everyone else’s.
But what about if you are quitting a job way before retirement? I thought that might be under "Not Working" but it seems as if there is only information about retiring.
Good question, and the video only touches on the logistics briefly at th-cam.com/video/s6FN9Ff4dJM/w-d-xo.html. But more detail on the options might be helpful. In general, you typically have the following options when you quit a job: 1) Roll the money to an IRA 2) Roll it to your next job's retirement plan (if available) 3) Cash it out and pay any taxes 4) Leave the money in the plan until you decide to do something else with it. There are pros and cons of each option, and you may have additional choices, but that's a high-level overview. As always, it's important to research those options carefully and consult with tax, legal, and financial professionals if you want individualized guidance.
Why does taking money out of your Roth 401k potentially move you up to a new tax bracket? I thought Roth withdrawals were tax free, and do not count as income?
If they're "qualified" Roth withdrawals, they may be tax-free. But if it's not a qualified withdrawal, the earnings can be included in your income. And things are especially tricky with 401(k) plans, which require you to withdraw funds pro-rata. In contrast, a Roth IRA would allow you to withdraw your regular contributions (basis) first, and you could potentially leave the earnings for last (and you might not even need to dip into the IRA's earnings).
I left my job at age 60 in 2022 due to very stressful conditions. Cashed in my 401k and paid taxes on it before I even received cashout. It was less than $10,000 before paying taxes on it. I gave some to help my daughter and paid of debt with the rest. Do I have to pay additional taxes on that? I'm no longer working. Not able to work full time any longer. THANK YOU
This is a good question, and it can get complicated. I assume they withheld 20% (mandatory withholding) when you cashed out. With the remainder, it sounds like you helped your daughter and paid off debt. Whether or not you'll owe additional taxes will probably depend on your other income/deductions for 2022 (among other things on your tax return). That 20% is an advance/deposit on your taxes, but you never know if it's the correct amount. If it was too much, you could get a refund (or owe less). But if it wasn't enough, you may still owe more. Let's hope you get some money back.
@Approach Financial THANK YOU for your response. I filed my taxes (only held 1 job with no deductions) and got a 1099 form to report on my return. I did have to claim it, BUT due to the 20% I paid when I cashed it out, being 59 1/2 years old, filing electronically, and no complications I was NOT impacted.
I believe a lot of it is do to fear of the unknown why people r pulling out not referencing to the people “ who are about to retire but the younger ones
You don’t mention the tax pitfalls of withdrawal. I have to take mandated withdrawals and end up getting killed in taxes, both state and federal.plus paying penalties every year
If you're using a loan, yes, you would be allowed to spend on anything you want (potentially with no taxes or penalties unless the loan is defaulted). But with a hardship withdrawal, that may be a tricky one because some dental could be cosmetic and some work is related to health/medical issues. A next step might be to contact the plan's Administrator and ask. They might want to know what type of work you're getting done and why. With that information, they can tell you what your plan's rules are and how best to proceed. I would guess that you're getting some medical-related work done, but I obviously don't know for sure, and your plan administrator needs to make that call. For detailed guidance on taxes and penalties, you'd need to check with your CPA or financial professional for details. Qualifying medical expenses could potentially be an exception to the early-withdrawal penalty (www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions) but you'd need more information to know more. I hope the procedure goes smoothly.
I'm going to hear more from you soon on the "The Rule of 55", but your comment in description says this option may not be good. I plan on using it. I've talked to my employers 401k broker and they seem fine with establishing lump sums or monthly installments as my employer allows it. Why is it that people don't know about this "rule"?
That's a good question, and I don't know. My best guess is that it only applies to a relatively small group of people who have the ability and the desire to take advantage of that window between 55 and 59.5. With most people retiring later than that, they're still in their accumulation years, and the ability to withdraw early isn't necessarily something they can make use of.
If you left a job that offered a 401(k), you should be able to get your vested balance from that job's 401(k) as a distribution-and then spend it on anything, including a vehicle. It could take a few weeks (or longer) for everything to happen, so a first step is to ask your former employer if you can get the funds and what the steps are. Or, call the 401(k) vendor (Vanguard or Fidelity, for example). Something to look at is how the distribution might be taxed. You can learn a bit more about the tax rates, any mandatory withholding, penalties, and more starting with this video: th-cam.com/video/sefx2KgWfMs/w-d-xo.html. After watching that, please do more research and/or work with a tax professional to triple-check how your taxes might be affected. You might want to pay estimated taxes or use withholding to manage your tax liability.
Did you mention that if you take a loan you subject yourself to a double taxation scenario? You pay the loan back with After Tax payroll and then again when you withdraw in retirement you are taxed on a it.
I'd start looking for old mailings (electronic or paper) from wherever the money went. Enrollment information could be helpful. Perhaps former co-workers or the HR person might have some ideas. You can also try your state's unclaimed property division if it's been a while. I doubt the paystubs say where the money went, but it's always worth checking. That said, the former payroll provider might be able to help.
Hello, I want to use my 401K plan to do some invest in a family business. Can I use the 55 yr old strategy to pull out funds? Is this a good idea to invest from my retirement?
I’m 70 & planning to retire within 1.5 years…. Should I take the money every month from my 401k / 457 plan as a supplement income with my SS & pension? What’s the pro & cons? Second thought is: should I take 40-50k for the down payment for buying a primary residence 1br apartment? WILL THIS 40/50k would be taxable? What’s your contact info?
Those are all great questions, and those are the types of things I help clients get clarity on. To the question on contact info: You can find that information and learn more about working with me at ApproachFP.com. There are several options available, including one-time and ongoing advice arrangements.
Regarding the taxation question, if the money is in a pre-tax retirement account, it is most likely taxable, but I can't say for sure since I don't know the details of your situation. This video discusses that topic: th-cam.com/video/xWt7QGw9toI/w-d-xo.html
Well can you answer this question for me that could be helpful. My employer sold there company to a bigger company basically like a merge. With us being sold now, we have a roll over option to transfer our old plan into the new plan. But I decided not to roll over and just take my old funds out as a cash withdrawal. Unfortunately I can't pull funds out because I'm considered still employed by some reason but how is that? I can't pull all my funds out and they rejected me twice on the company end?? There not letting me get my money. Is there anything I can do to get my funds out other then rolling it over? I plan on leaving the company and relocating need the best thing I can do to get my funds...But I still work there as of now but it's not the same company anymore if that make sense. It's a different name, plan everything...
That's a tricky one. It ultimately depends on what the 401(k) plan allows and how the merger was structured, among other things. The only way to know is to ask the plan administrator what your options are and ask them to triple-check the rules.
Hello if I say I am going to use to buy a vehicle because I need it, I got the money but later let is supposed I do not need to buy this vehicle, do I get penalized or not? thanks
That's a good question, and I'm not certain if I have a good answer. When you take a loan, leave your job, or take an in-service distribution, you can use the money for anything you want (so there would not be a penalty). But when it comes to a hardship distribution, the situation you're describing isn't something I've seen before, so I can't say for sure.
Hello. I'll be 72 in 1 month but plan to keep working. I hear that I have to start removing funds from my pension plan or be penalized. Is this correct? If I take 4% this year can I change the percentage next year?
That's a good question, and it depends on several factors. For example, in some 401(k) plans, you aren't required to take RMDs from your employer's plan while you're still working as long as you meet certain criteria. For example, if you don't own more than 5% of the company, you might not need to take RMDs while still employed, but there are some complications that can arise. I'd strongly suggest asking the Plan Administrator (is it a "pension plan," or another type of plan) to provide guidance based on your specific situation. As always, please triple-check with a CPA and any applicable professionals, as the comments on these pages may contain errors and omissions, be out of date, or not apply to a reader's situation. As far as changing the amount you withdraw, you often have flexibility to take as much or as little as you want, although you'd want to at least satisfy the RMD rules. If you're just pulling from a pre-tax IRA, for example, you typically have a high level of flexibility. Employer plans, annuities, and other vehicles might be more restrictive, so check with your providers or a financial professional to learn what options are available.
Can you take a non hardship withdrawal every year while still working? We plan to work til age 65. But want to start taking out $20,000 a year out at age 60 to slowly pay off the remainder of our debt before retirement.. We will still be in the 12% tax bracket, even with that withdrawal each year.
That might be possible. Ask your employer and plan administrator what your options are. For example, it might work to take in-service distributions (if allowed), but it depends on the specifics of your plan, among other things.
I obviously don't know the details, but it sounds like Fidelity might have cashed you out (or done a "forceout" distribution). If you got a check payable to you-and not to another retirement account-you might be able to re-deposit those funds into your new job's plan within 60 days. But that strategy can be tricky for several reasons. Research "60-day rollovers" and check with a tax professional to verify everything and reduce the chances of problems.
That's a good question, and while I can't give tax guidance in these comments, you could still have to pay a penalty for a 401(k) distribution when buying a home. Please see this page (www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions) and triple-check with a tax advisor and/or the IRS, as I do not know your details.
What if I want to take out my retirement ($7000) from my Walmart employer 401k plan? I ended up being a stay at home mom while my husband works. I homeschool my children. Should I just cash a check if they send it or send the check or rollover it to a E*trade Roth IRA account?
Your options might depend on how they issue the check (if it's payable to you personally or to an IRA, for example), and if it's pre/post tax money. The employer's Plan Administrator and/or a CPA should be able to help sort out those important details. I'd start by deciding what you want to do with the money, and then making sure your former employer processes the distribution the way you want. Whether you should cash out or not is a big question, and I wouldn't be able to provide any helpful guidance without knowing all of the details.
I have a question involving the CARES Act (2020) and the CARES Act extension (2021). Are the 2020 rules regarding early 401k covid withdrawals and the spreading the income tax out over 3 years still applicable to 401k withdrawals made in 2021? For example, if I pull $40,000 out of my 401k this year(2021) under the CARES Act rules, will the 10% early withdrawal penalty waived, and will I be able to defer the income tax over the next 3 years? Thanks, Rob
That's a good question, and like most important questions, it would be irresponsible of me to try to answer in TH-cam comments without knowing more about your situation and the context. I've basically decided to not even attempt to answer technical questions in the comments. I'd feel terrible if I just gave quick advice and ended up leading viewers astray (with expensive consequences for you), and I could spend all day answering questions. I'm sure the answer is available online somewhere, or you can always run that by your CPA for individualized guidance. Thanks, and best wishes.
There's no specific age for taking withdrawals (assuming the plan allows it), but you might face income tax and additional taxes/penalties/interest, especially if you're under 59.5. As always, please do more research and triple-check with a CPA or tax preparer before making any decisions, as the information in these comments may contain errors or omissions, or this may be outdated.
If you transfer everything to an IRA, you may be able to avoid the 20% IRS withholding. That 20% is typically only required if you cash out (having funds paid directly to you or deposited to your bank account, for example). So, if you're taking any portion as a cash out distribution, you'll likely have some withholding. But if it's all going to an IRA through a direct rollover to the new custodian, you can likely avoid the 20% withholding. As always, the most important thing is to check with your employer and with a CPA to find out the specifics for your plan, because I don't have that information and can only share general thoughts that are not specific to your situation.
Is this a good idea ? Most millionaires made their money by consistently investing and never pulling out money 100%. Facts study was done by Chris hogan I believe and Not sure if david Ramsey was in it too
Yeah if you put 45k per year in a safe ETF, you'll have a million dollars in just 15 years or something. Probably a little bit sooner. Kinda hard for some people to be able to budget that much per year but it's just a point to show how powerful compound interest is.
You can start moving it over out of a retirement account with certain loopholes.. so learning. I am moving it to an IRA first and then use the other methods from there to get control of it so I have hardly any taxes later
You might start by contacting any former employers and asking if they have records. They can also tell you who the current 401(k) provider is, and you can ask them. If you don't find anything, you might try state Unclaimed Property departments (in case your funds were turned over to the state after several years).
If they don't offer loans or hardship withdrawals-and you haven't rolled money in or qualified for an in-service distribution-I'm not aware of any way to get funds out while you still work there, unfortunately. However, it's always best to ask the plan administrator what options are available to you, as these comments might be out-of-date or be inaccurate.
Yes! I'm wondering right now, "how do it get out of this!?" Thanks for this video!
Thanks, I’ve been looking for this type of video for awhile. No one else tells you this
Thank you for your video
I want to thank you this is a very good video and it’s exactly what I wanted to find out about with all the details
Worked great for me to create an income stream between 56-591/2 with no penalty.
My 401k is losing thousands every month and my employer wont allow me to close my account or withdraw anything.. they will only allow loans... so Im sitting here, completely hopeless.. watching my life savings sink and there's nothing i can do about it...
It's losing thousands every month, for how long exactly and what are you invested in?
You should be able to close your account. Check with a lawyer . Find out the why you can’t close your account. Than sue.
Same
Your employer should use a company, try to reach out to the company
Can you switch the 401k to the savings account option, rather than the one rather than the one tied to the stock market? My husband’s is a savings account and, while it’s a slower growth, it didn’t lose money in the last crash like everyone else’s.
Good information…..I’m retiring in about two years and researching what to do with my 401k’s. Just subscribed.
So they take your money and have to approve you to get it back?
Of course this information was useful 👌👍
But what about if you are quitting a job way before retirement? I thought that might be under "Not Working" but it seems as if there is only information about retiring.
Good question, and the video only touches on the logistics briefly at th-cam.com/video/s6FN9Ff4dJM/w-d-xo.html. But more detail on the options might be helpful. In general, you typically have the following options when you quit a job: 1) Roll the money to an IRA 2) Roll it to your next job's retirement plan (if available) 3) Cash it out and pay any taxes 4) Leave the money in the plan until you decide to do something else with it. There are pros and cons of each option, and you may have additional choices, but that's a high-level overview. As always, it's important to research those options carefully and consult with tax, legal, and financial professionals if you want individualized guidance.
Why does taking money out of your Roth 401k potentially move you up to a new tax bracket? I thought Roth withdrawals were tax free, and do not count as income?
If they're "qualified" Roth withdrawals, they may be tax-free. But if it's not a qualified withdrawal, the earnings can be included in your income. And things are especially tricky with 401(k) plans, which require you to withdraw funds pro-rata. In contrast, a Roth IRA would allow you to withdraw your regular contributions (basis) first, and you could potentially leave the earnings for last (and you might not even need to dip into the IRA's earnings).
How can I get money from my Closed 401k to save my home 🏡 what are the exceptions 🤔
I left my job at age 60 in 2022 due to very stressful conditions. Cashed in my 401k and paid taxes on it before I even received cashout. It was less than $10,000 before paying taxes on it. I gave some to help my daughter and paid of debt with the rest. Do I have to pay additional taxes on that?
I'm no longer working. Not able to work full time any longer.
THANK YOU
This is a good question, and it can get complicated. I assume they withheld 20% (mandatory withholding) when you cashed out. With the remainder, it sounds like you helped your daughter and paid off debt. Whether or not you'll owe additional taxes will probably depend on your other income/deductions for 2022 (among other things on your tax return). That 20% is an advance/deposit on your taxes, but you never know if it's the correct amount. If it was too much, you could get a refund (or owe less). But if it wasn't enough, you may still owe more. Let's hope you get some money back.
@Approach Financial THANK YOU for your response. I filed my taxes (only held 1 job with no deductions) and got a 1099 form to report on my return. I did have to claim it, BUT due to the 20% I paid when I cashed it out, being 59 1/2 years old, filing electronically, and no complications I was NOT impacted.
How did you start the process? I don't know where to start 😢
Thank you for the value information Sr.
I believe a lot of it is do to fear of the unknown why people r pulling out not referencing to the people “ who are about to retire but the younger ones
You don’t mention the tax pitfalls of withdrawal. I have to take mandated withdrawals and end up getting killed in taxes, both state and federal.plus paying penalties every year
I need extensive dental work done. Can I take a withdrawal without penalties for that. Would it be considered medical expenses? Thanks
If you're using a loan, yes, you would be allowed to spend on anything you want (potentially with no taxes or penalties unless the loan is defaulted). But with a hardship withdrawal, that may be a tricky one because some dental could be cosmetic and some work is related to health/medical issues. A next step might be to contact the plan's Administrator and ask. They might want to know what type of work you're getting done and why. With that information, they can tell you what your plan's rules are and how best to proceed. I would guess that you're getting some medical-related work done, but I obviously don't know for sure, and your plan administrator needs to make that call. For detailed guidance on taxes and penalties, you'd need to check with your CPA or financial professional for details. Qualifying medical expenses could potentially be an exception to the early-withdrawal penalty (www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions) but you'd need more information to know more. I hope the procedure goes smoothly.
@@ApproachFinancial thanks for replying. I'm missing lots of teeth and need implants.
I'm going to hear more from you soon on the "The Rule of 55", but your comment in description says this option may not be good. I plan on using it. I've talked to my employers 401k broker and they seem fine with establishing lump sums or monthly installments as my employer allows it. Why is it that people don't know about this "rule"?
That's a good question, and I don't know. My best guess is that it only applies to a relatively small group of people who have the ability and the desire to take advantage of that window between 55 and 59.5. With most people retiring later than that, they're still in their accumulation years, and the ability to withdraw early isn't necessarily something they can make use of.
I changed jobs and i need to purchase a vehicle, is this an option?
If you left a job that offered a 401(k), you should be able to get your vested balance from that job's 401(k) as a distribution-and then spend it on anything, including a vehicle.
It could take a few weeks (or longer) for everything to happen, so a first step is to ask your former employer if you can get the funds and what the steps are. Or, call the 401(k) vendor (Vanguard or Fidelity, for example). Something to look at is how the distribution might be taxed. You can learn a bit more about the tax rates, any mandatory withholding, penalties, and more starting with this video: th-cam.com/video/sefx2KgWfMs/w-d-xo.html. After watching that, please do more research and/or work with a tax professional to triple-check how your taxes might be affected. You might want to pay estimated taxes or use withholding to manage your tax liability.
Did you mention that if you take a loan you subject yourself to a double taxation scenario? You pay the loan back with After Tax payroll and then again when you withdraw in retirement you are taxed on a it.
There is no tax when you take out a loan. As long as your paying it back!
How can I find my old forgotten 401k if the employer is bankrupted already . No information to help ...can i find my 401k from my old pay stubs?
I'd start looking for old mailings (electronic or paper) from wherever the money went. Enrollment information could be helpful. Perhaps former co-workers or the HR person might have some ideas. You can also try your state's unclaimed property division if it's been a while. I doubt the paystubs say where the money went, but it's always worth checking. That said, the former payroll provider might be able to help.
Couldn't you have an attorney do a sweep for your social security number and see where money is? They do that when you are getting divorced ...
Hello, I want to use my 401K plan to do some invest in a family business. Can I use the 55 yr old strategy to pull out funds? Is this a good idea to invest from my retirement?
I’m 70 & planning to retire within 1.5 years…. Should I take the money every month from my 401k / 457 plan as a supplement income with my SS & pension? What’s the pro & cons?
Second thought is: should I take 40-50k for the down payment for buying a primary residence 1br apartment?
WILL THIS 40/50k would be taxable?
What’s your contact info?
Those are all great questions, and those are the types of things I help clients get clarity on. To the question on contact info: You can find that information and learn more about working with me at ApproachFP.com. There are several options available, including one-time and ongoing advice arrangements.
Regarding the taxation question, if the money is in a pre-tax retirement account, it is most likely taxable, but I can't say for sure since I don't know the details of your situation. This video discusses that topic: th-cam.com/video/xWt7QGw9toI/w-d-xo.html
Well can you answer this question for me that could be helpful. My employer sold there company to a bigger company basically like a merge. With us being sold now, we have a roll over option to transfer our old plan into the new plan. But I decided not to roll over and just take my old funds out as a cash withdrawal. Unfortunately I can't pull funds out because I'm considered still employed by some reason but how is that? I can't pull all my funds out and they rejected me twice on the company end?? There not letting me get my money. Is there anything I can do to get my funds out other then rolling it over? I plan on leaving the company and relocating need the best thing I can do to get my funds...But I still work there as of now but it's not the same company anymore if that make sense. It's a different name, plan everything...
That's a tricky one. It ultimately depends on what the 401(k) plan allows and how the merger was structured, among other things. The only way to know is to ask the plan administrator what your options are and ask them to triple-check the rules.
Subbed thanks ❤
Thank you for the information
Can i make withdrawals if i roll over a job 401k to an ira 401k after 59.5?
Hello if I say I am going to use to buy a vehicle because I need it, I got the money but later let is supposed I do not need to buy this vehicle, do I get penalized or not? thanks
That's a good question, and I'm not certain if I have a good answer. When you take a loan, leave your job, or take an in-service distribution, you can use the money for anything you want (so there would not be a penalty). But when it comes to a hardship distribution, the situation you're describing isn't something I've seen before, so I can't say for sure.
Hello.
I'll be 72 in 1 month but plan to keep working.
I hear that I have to start removing funds from my pension plan or be penalized. Is this correct?
If I take 4% this year can I change the percentage next year?
That's a good question, and it depends on several factors. For example, in some 401(k) plans, you aren't required to take RMDs from your employer's plan while you're still working as long as you meet certain criteria. For example, if you don't own more than 5% of the company, you might not need to take RMDs while still employed, but there are some complications that can arise. I'd strongly suggest asking the Plan Administrator (is it a "pension plan," or another type of plan) to provide guidance based on your specific situation. As always, please triple-check with a CPA and any applicable professionals, as the comments on these pages may contain errors and omissions, be out of date, or not apply to a reader's situation.
As far as changing the amount you withdraw, you often have flexibility to take as much or as little as you want, although you'd want to at least satisfy the RMD rules. If you're just pulling from a pre-tax IRA, for example, you typically have a high level of flexibility. Employer plans, annuities, and other vehicles might be more restrictive, so check with your providers or a financial professional to learn what options are available.
Can you take a non hardship withdrawal every year while still working? We plan to work til age 65. But want to start taking out $20,000 a year out at age 60 to slowly pay off the remainder of our debt before retirement.. We will still be in the 12% tax bracket, even with that withdrawal each year.
That might be possible. Ask your employer and plan administrator what your options are. For example, it might work to take in-service distributions (if allowed), but it depends on the specifics of your plan, among other things.
I just left my job and fidelity already sent all my money and I'm thinking about rolling my money to my new job. Can I do that and how? Please help...
I obviously don't know the details, but it sounds like Fidelity might have cashed you out (or done a "forceout" distribution). If you got a check payable to you-and not to another retirement account-you might be able to re-deposit those funds into your new job's plan within 60 days. But that strategy can be tricky for several reasons. Research "60-day rollovers" and check with a tax professional to verify everything and reduce the chances of problems.
So if my employer allows hardship withdrawal for purchase of primary home, do I still pay 10% penalty on top of 10% tax?
That's a good question, and while I can't give tax guidance in these comments, you could still have to pay a penalty for a 401(k) distribution when buying a home. Please see this page (www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions) and triple-check with a tax advisor and/or the IRS, as I do not know your details.
HOW ABOUT FUNERAL BURIAL?? ANY PENALTY FEE?
Thank you!
What if I want to take out my retirement ($7000) from my Walmart employer 401k plan? I ended up being a stay at home mom while my husband works. I homeschool my children. Should I just cash a check if they send it or send the check or rollover it to a E*trade Roth IRA account?
Your options might depend on how they issue the check (if it's payable to you personally or to an IRA, for example), and if it's pre/post tax money. The employer's Plan Administrator and/or a CPA should be able to help sort out those important details. I'd start by deciding what you want to do with the money, and then making sure your former employer processes the distribution the way you want. Whether you should cash out or not is a big question, and I wouldn't be able to provide any helpful guidance without knowing all of the details.
Very helpful 😊
Sooo much information for 401 K !!!! But I don't see anything about 403B like some informations please
I have a question involving the CARES Act (2020) and the CARES Act extension (2021).
Are the 2020 rules regarding early 401k covid withdrawals and the spreading the income tax out over 3 years still applicable to 401k withdrawals made in 2021? For example, if I pull $40,000 out of my 401k this year(2021) under the CARES Act rules, will the 10% early withdrawal penalty waived, and will I be able to defer the income tax over the next 3 years?
Thanks,
Rob
That's a good question, and like most important questions, it would be irresponsible of me to try to answer in TH-cam comments without knowing more about your situation and the context. I've basically decided to not even attempt to answer technical questions in the comments. I'd feel terrible if I just gave quick advice and ended up leading viewers astray (with expensive consequences for you), and I could spend all day answering questions. I'm sure the answer is available online somewhere, or you can always run that by your CPA for individualized guidance. Thanks, and best wishes.
What is the earliest age you can withdraw your 401k from a former job
There's no specific age for taking withdrawals (assuming the plan allows it), but you might face income tax and additional taxes/penalties/interest, especially if you're under 59.5. As always, please do more research and triple-check with a CPA or tax preparer before making any decisions, as the information in these comments may contain errors or omissions, or this may be outdated.
can I withdraw all the money and request the 20% to be transferred to IRA?
If you transfer everything to an IRA, you may be able to avoid the 20% IRS withholding. That 20% is typically only required if you cash out (having funds paid directly to you or deposited to your bank account, for example). So, if you're taking any portion as a cash out distribution, you'll likely have some withholding. But if it's all going to an IRA through a direct rollover to the new custodian, you can likely avoid the 20% withholding. As always, the most important thing is to check with your employer and with a CPA to find out the specifics for your plan, because I don't have that information and can only share general thoughts that are not specific to your situation.
Is this a good idea ? Most millionaires made their money by consistently investing and never pulling out money 100%. Facts study was done by Chris hogan I believe and Not sure if david Ramsey was in it too
Yeah if you put 45k per year in a safe ETF, you'll have a million dollars in just 15 years or something. Probably a little bit sooner.
Kinda hard for some people to be able to budget that much per year but it's just a point to show how powerful compound interest is.
It's based on the stock market the market goes down same with the 401k account I think its better to try and save your own money up
You can start moving it over out of a retirement account with certain loopholes.. so learning. I am moving it to an IRA first and then use the other methods from there to get control of it so I have hardly any taxes later
Bravo!
who will i contact to help me know if I have 401K existing
You might start by contacting any former employers and asking if they have records. They can also tell you who the current 401(k) provider is, and you can ask them. If you don't find anything, you might try state Unclaimed Property departments (in case your funds were turned over to the state after several years).
So my job doesn’t allow me to take out any money or loans, and I still work there. Is there any way I can roll it over or a way to force it out?
If they don't offer loans or hardship withdrawals-and you haven't rolled money in or qualified for an in-service distribution-I'm not aware of any way to get funds out while you still work there, unfortunately. However, it's always best to ask the plan administrator what options are available to you, as these comments might be out-of-date or be inaccurate.
Hello,
Can I get your help please?
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Hello, do you respond? I have a question.
Hi, feel free to ask.
your awesome
IRS Rule of 55.
Remember they will tax you on this money so remember Uncle Sam
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