Mike S
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See if you can roll that 401k into another retirement vehicle... perhaps an IRA or annuity. Do NOT use it to pay down your mortgage... if you cash out that 401k, not only will you have a penalty, but your tax situation will be far worse than you expect! See your tax advisor... and he'll tell you NOT to do it. |
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discoveri
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NO! you will lose the majority of your 401k on taxes. Talk to your bank and if they roll it over, you won't lose your money. |
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craigash7
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It would depend on your situation. I would hold out on cashing out that 401k until you absolutely need it. If you pull it out prematurely they'll take quite a good chunk out in penalties and taxes. We recently moved and pulled out my husband's 401k from his old job, and when it was all said and done we ended up with about half. Then when it was tax time this spring we still had to pay state taxes on it (they were not originally taken out when we pulled the 401k). If you don't need it right now I would say keep it where it is and let it keep building, and then roll it over if you get another job that has a 401k, it will benefit you in the long run. |
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elk312
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If you cash out your 401K you will pay heavy tax penalties-possibly causing you to go farther into debt rather than helping you out. I would avoid it. Just roll it over to your next employer's retirement plan. |
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Thot77
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File unemployment. Find out if you can take a loan from your 401k. A lot of the plans can let you take a certain amount for loan. Don't cash it you will regret it. |
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iltmaemc
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suggest that you talk with a tax specialist or CPA |
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logiegt5
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You will pay a pretty penny for doing so, If you have NO OTHER choice and want to remain in your house then YES you should. However if you can make money on the sale of your house then you should temporary downgrade into another home to by some time, don't go into debt or loose money on extra taxes if you can help it. |
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Sizzle Pizzle
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if u were smart enuf to get a low interest loan while they were available (and not variable interest hopefully) then might be wise to not pay it off. Wouldn't be good to pay off a low interest loan and then be forced to borrow on a high-interest credit card or take out a new equity loan at higher apr.
but u do what u gotta do...
my daddy always told me to pay off my house when times were good.....then if u fall on hard times, as a last resort you can take out a loan on your house and get back on your feet.
very few following that advice these days....most in debt to their eyeballs
and don't be afraid of that 10% penalty....if you must have some cash from that 401k then take only what u need.
you can roll it over into Ameritrade IRA and trade stock with it if you want hehe.....maybe strike it rich if u get lucky. |
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natlang
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Do you expect to find another decent job in the area? If not, you would just be delaying an inevitable move and losing a bunch of your saved money in the process. Consider the possibility of selling the house and moving to a better economic area.
However if you do have good job prospects and you REALLY need that 401k money, it could be worth it to bite the bullet and pay the tax penalties to keep your bills paid until you get things stabilized again.
It's not very satisfying to have some money locked away for retirement if you're homeless, jobless, and hungry. |
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pelos
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you will pay taxes up the HOO-Ha if you take it out before the age of 59 |
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ISU
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To prevent foreclosure it may be necessary, particularly if you need/want to stay in the area. However, you could sell the home and find employment in a lower cost of living area and then use the proceeds to invest in a newer, maybe even better home there. You will pay a 10% fine to the IRS for early withdrawal if you are less than 59 1/2 years of age. So if you're getting close to this age you should wait to prevent the 10% loss.
Good luck!!! |
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NA A
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Lose* |
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singer1953dancer
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If possible, NO. You lose some tax breaks, it will be very hard to re-pay the amounts you take out, and then will have to pay taxes AND penalties. If you think you can get a job fairly soon, you might be better off borrowing from a bank to keep the house. But before you do anything, get REAL PROFESSIONAL ADVICE, |
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kayrrie101
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u can if u want, or maybe move to a smaller house. |
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renee1724
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If you have no place else to go, and no other means of making money. I would. You can always put money back into it. |
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