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401k withdrawals
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<blockquote data-quote="FAVREFAN" data-source="post: 313904" data-attributes="member: 13078"><p>According to your first statement there are no withdrawals whatsoever on pretax monies under the age of 59 1/2. That is false.</p><p> On the second, you can leave it in, roll it into an IRA or roll it into the 401(k) at your next job......thus the term "portable".</p><p> On the third, don't confuse "withdrawal" with "loan". Huge difference. No "hardship" on loans, just withdrawals. You can take just under 50% of core assets for "loans". No penalty and you pay back at the current 7%.(1% above prime)...not 8%.</p><p> Quick note as well. Not sure if you're a teamster or management. But the copy/paste info you posted does not match mine(teamsters) at all. Many more "hardship" circumstances are posted in mine.</p><p> Lastly......Real life example....</p><p>.....My friend's wife withdrew $180,000(total account) from her JP Morgan 401(k) to pay off his work truck, their mini-van, their car and all credit cards. They are not in any financial trouble whatsoever, just wanted 0 debts. House is in the clear. She's 44 and he's 38. She payed the 10% penalty and payed 20% tax withholding up front. At tax time they owed a little more and the 3% state tax. Government can't stop you, just penalize you. If it was considered the "hardship withdrawal" she may have avoided the 10% penalty.</p><p> Real life example....</p><p>.....My sister in law borrowed(loan/not withdrawal) $7,000 for breast implants from her companies 401(k). She payed 0%tax, 0% penalty tax but had to pay it back at that years rate of 7% within the timeframe chosen. This is where you can lose. The S & P 500 payed around 15% that year. She payed herself back at 7%. Loss of 8%. But yes, they look fabulous!</p></blockquote><p></p>
[QUOTE="FAVREFAN, post: 313904, member: 13078"] According to your first statement there are no withdrawals whatsoever on pretax monies under the age of 59 1/2. That is false. On the second, you can leave it in, roll it into an IRA or roll it into the 401(k) at your next job......thus the term "portable". On the third, don't confuse "withdrawal" with "loan". Huge difference. No "hardship" on loans, just withdrawals. You can take just under 50% of core assets for "loans". No penalty and you pay back at the current 7%.(1% above prime)...not 8%. Quick note as well. Not sure if you're a teamster or management. But the copy/paste info you posted does not match mine(teamsters) at all. Many more "hardship" circumstances are posted in mine. Lastly......Real life example.... .....My friend's wife withdrew $180,000(total account) from her JP Morgan 401(k) to pay off his work truck, their mini-van, their car and all credit cards. They are not in any financial trouble whatsoever, just wanted 0 debts. House is in the clear. She's 44 and he's 38. She payed the 10% penalty and payed 20% tax withholding up front. At tax time they owed a little more and the 3% state tax. Government can't stop you, just penalize you. If it was considered the "hardship withdrawal" she may have avoided the 10% penalty. Real life example.... .....My sister in law borrowed(loan/not withdrawal) $7,000 for breast implants from her companies 401(k). She payed 0%tax, 0% penalty tax but had to pay it back at that years rate of 7% within the timeframe chosen. This is where you can lose. The S & P 500 payed around 15% that year. She payed herself back at 7%. Loss of 8%. But yes, they look fabulous! [/QUOTE]
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