Taking money out of 401k

Discussion in 'UPS Discussions' started by Fnix, Feb 5, 2008.

  1. Fnix

    Fnix Active Member

    How would I go about taking money out of my 401k and what percentage of it would be taxed?

    I need to take about $1,000 out for an emergency and would like to know how much I would really need to take out to get that.
     
  2. upswrench

    upswrench New Member


    You take out a loan on your money at 8% interest and you pay it back weekly. you can only take out 1/2 of what you have invested.

    Just request a loan they will send you paper work, it only takes a couple days. However this needs to be a hardship loan there are only a few reason that qualify to take your money out this was such as funeral expenses, buying your first house, school ect. the paperwork they send you explains it all.

    Request the loan and the paperwork will arrive in 3 days.

    HOPE IT HELPS
     
  3. FAVREFAN

    FAVREFAN Member

    Isn't the payback rate 1% above prime? Prime is at 6% right now. So it might only be payed back at 7% interest.
     
  4. upswrench

    upswrench New Member

    I just tried to take money out last week and the rate was over 8% it could very well be less than this now. I was just giving the information I had in front of me. It was all for nothing anyway because, I did not qualify for a hardship loan. I was just going to pay off my truck.

    They are real picky on what you can take money out for.

    I contacted Fnix via email and gave him the web site he needed to go on to find out the info.
     
  5. FAVREFAN

    FAVREFAN Member

    Cool. Yeah, the Fed has cut 1.25% in the last 2 weeks which directly effects prime. That's why it's lower now. Happy investing!
     
  6. brownrodster

    brownrodster New Member

    I cashed in my 401k from a previous job and they taxed it all then took 10% on top of that.
     
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    My best advice is for you not to touch your 401K. You will most likely not qualify for a loan as loans are provided only for certain situations (school, medical, foreclosure). A withdrawal would have to include a 10% penalty and Fed tax at 20%, so you would only net just over $700 out of the $1000 you are requesting. My advice to you is to seek alternative means to get this money (credit card advance, pay day loan, RAL on your tax refund ) as you most likely will not be able to touch your 401k for this money.