Can you take money out of your 401K for any reason? Or does it have to be a "hardship loan?"

Discussion in 'Introductions and Welcomes' started by Bob's wife, Jul 14, 2018.

  1. Bob's wife

    Bob's wife New Member

    I am sorry. I am having a hard time finding an answer to this question and finding the necessary forms to get the ball rolling. Any advice and guidance would be awesome!
     
  2. tennfun39

    tennfun39 New Member

    If you are still employed by the company it has to be a hardship
     
  3. tennfun39

    tennfun39 New Member

    You can take out a Loan at any time but not money without payback unless hardship
     
  4. BakerMayfield2018

    BakerMayfield2018 Fight the power.

    Wrong. And you still have to payback a hardship loan. Don’t comment on something if you don’t know what your talking about. Thanks.
     
  5. scooby0048

    scooby0048 This page left intentionally blank

    Does Bob work here or do you?
     
  6. burrheadd

    burrheadd KING Of GIFS

    This is something Bob needs to ask
     
  7. scooby0048

    scooby0048 This page left intentionally blank

    Stop hijacking threads. Can you not see the post just above yours where we are trying to determine 1st, before we get all crazy, who actually works here.
     
  8. What part of saving for retirement that nobody seems to understand?
     
  9. Indecisi0n

    Indecisi0n Well-Known Member

    Ain't nobody got time for that. I need a new car now
     
  10. Jones

    Jones fILE A GRIEVE! Staff Member

    Loan Rules
    1. Maximum Loan Amount is limited to 50% of your vested account balance or, if lower, $50,000 minus the difference between the highest outstanding loan balance in the previous 12 months and the current outstanding loan balance.
    1. Repaying an outstanding loan will not necessarily increase the amount permitted as a new loan.
    1. Assets in the Self Managed Account (SMA) are included in the Loan Availability amount, but are not readily available.
    1. SMA assets required for the desired loan amount will first need to be sold and transferred to the Core account before those assets can be used for the loan.
    1. There is a $75.00 charge for each hardship loan. If the documentation you provide showing proof of hardship does not meet the requirements for processing, you will be charged an additional $75.00 each time the loan is reviewed.
    1. Annual Processing Fee - $25 payable in quarterly installments of $6.25
    1. Purchase of a primary residence.
    1. Post-secondary education expenses.
    1. To prevent eviction from or foreclosure on your primary residence.
    1. Unreimbursed medical expenses.
    1. Payment for burial or funeral expenses for your deceased parent, spouse, children or other dependents.
    1. Expenses for the repair of any damages to your principal residence that would qualify for the casualty deduction for federal income tax purposes.
    1. Adoption-related expenses.
    1. You may have up to two loans outstanding at any time.
    1. Repayment of your loan plus interest is made through after-tax payroll deduction.
    1. You must repay the loan in full within 90 days after termination or it will be considered a taxable event, subject to all current taxes and any early withdrawal penalties.
    1. Across all UPS sponsored plans in which participate or have participated, if you have/had an outstanding loan, it may impact your maximum amount for a new loan.
    1. If you default on a loan, you will not be permitted to take another loan until the defaulted loan is repaid. The Plan’s default provision occurs 90 days from termination or missed payment.
    You have up to 5 years to repay a non-residential loan and up to 20 years for a residential loan.

    Withdrawal Rules
    1. Prior to age 59 1/2, you may take a hardship withdrawal for the following reasons:
    1. Purchase of a primary residence.
    1. Post-secondary education expenses.
    1. To prevent eviction from or foreclosure on your primary residence.
    1. Unreimbursed medical expenses.
    1. Payment for burial or funeral expenses for your deceased parent, spouse, children or other dependents.
    1. Expenses for the repair of any damages to your principal residence that would qualify for the casualty deduction for federal income tax purposes.
    1. You must first exhaust all other loan and withdrawal possibilities before requesting a hardship withdrawal.
     
  11. Please don't even start with me on this subject.
     
  12. If you are 55 or older and separated from employment tmyou can take the money out penalty free
     
  13. Jones

    Jones fILE A GRIEVE! Staff Member

    You can actually start withdrawing at 54 as long as you turn 55 that year.
     
  14. Reguardless it's too early
     
  15. Jones

    Jones fILE A GRIEVE! Staff Member

    Not necessarily.
     
  16. Yes it is
    Unfortunately I know too many people that spent their 401k in 2008 and 2009. That money would he tripled by now
     
  17. Jones

    Jones fILE A GRIEVE! Staff Member

    It might have been too early for those folks, but everyone is not in the same boat.
     
  18. Who knows when it's the right time?
    In your fifties is tooearl to withdrawal.
     
  19. Jones

    Jones fILE A GRIEVE! Staff Member

    Blanket statements are pretty much always wrong. If you've got a good plan it's ok, if you've got a bad plan it's not. People are different.
     
  20. You are losing too much growth time by taking it out that early. You sht have enough cash reserves ,to let it grow a little longer