Any accountants here?

[parents4eyes]

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Edited October 2, 2010 by parents4eyes

[Suzan]

I'm not an accountant but I have some experience within a 401(k) company. It is recommended that you never take out your money until you retire to get the best return on your investment. That said, if your company offers loans, you can take out a loan and pay yourself back the interest so in that way you are not out any money (except maybe some earnings on it). This would be the preferred way. Otherwise, you may have an inservice withdrawl you could take that would require you pay taxes and may have an early penalty. I looked into this recently and for $9000, I would pay $3000 in taxes/fees. I decided it was not worth it to lose that money. I do have 401(k) loans though and it has helped bail me out, even if it was not the best decision for my retirement, I figure I have enough time to make it back up.

 

There is also a hardship withdrawal but I don't know the sepecifics on what constitutes a hardship. This would be if you needed more than your inservice withdrawl allowed. This all depends on your plan and that they offer you.

 

Susan

[Worried_Dad]

This is exactly what we did to pay for IVIG rounds 2 & 3. Our company uses Vanguard for our 401(k), and it was pretty easy: didn't have to provide a reason or justification, could apply online, and the rate was better than we could have gotten through any other channel of which we're aware.

 

Good luck!

 

 

I'm not an accountant but I have some experience within a 401(k) company. It is recommended that you never take out your money until you retire to get the best return on your investment. That said, if your company offers loans, you can take out a loan and pay yourself back the interest so in that way you are not out any money (except maybe some earnings on it). This would be the preferred way. Otherwise, you may have an inservice withdrawl you could take that would require you pay taxes and may have an early penalty. I looked into this recently and for $9000, I would pay $3000 in taxes/fees. I decided it was not worth it to lose that money. I do have 401(k) loans though and it has helped bail me out, even if it was not the best decision for my retirement, I figure I have enough time to make it back up.

 

There is also a hardship withdrawal but I don't know the sepecifics on what constitutes a hardship. This would be if you needed more than your inservice withdrawl allowed. This all depends on your plan and that they offer you.

 

Susan