Does anyone know how to get your money out of 401K.. It is my money and they say I can't have it. I will take the tax hit, so I wonder why they think they can control my money. Anybody else have had this problem?
This was discussed in another thread a little while back, you cannot withdraw your money unless it falls under certain guidelines. You cannot just take your money out, check the ups/teamsters 401k website and it should give you the info.
Typically you have to make a written request to the company managing your 401k. Some will accept a e-request via their website. Most plans will let you specify how much to withhold for federal and state taxes. Make sure you withhold enough or you could face a hefty tax bill at the end of the year. Usually the 10% early withdrawl penalty is not included in the amount you specify to be withheld. If you are in the teamsters/ups 401k you are always 100% vested, meaning you can always withdraw your money. You will just need to make the proper request.
I just want my money out to make things a lot easier on me. Citistreet tells me I can't have my money at all unless I am in foreclosure of home. I think that is wrong because it is all my money. Any suggestions. It is my fault that I went beyond my means, but I want to fix it, and they say I can't. Kinda making me mad.
You put the money into 401K because it's a tax-deferred strategy. You did not pay taxes on it now, because you will pay the tax man later. It reduces your take-home pay (so you pay less taxes now, and it allows your money to grow tax-deferred.
In certain cases of hardship, you are allowed to withdrawal your money, but then you face the tax bill for all the money at the end of the year, plus a 10% early withdrawal penalty.
I don't know all the details of your personal situation, but I would suggest that if you need money, cut back your 401K to 0%, and use that. If you need money in the short-term, work extra hours.
When you signed up for the 401k program, you entered a contract. You need to know the details of the contract before you apply. The information they are telling you is correct to the best of my knowledge.
For future reference, you can put a percentage of your wages into an after-tax plan through your 401k. That money can be withdrawn at any time for any reason. The taxes have already been paid and there is no penalty. You will have to pay taxes on the interest it accrues only. I put 1% into this account as a rainy day fund (or a strike fund) and it has grown to over $7,000.