Can You Cash Out On Your 401k If You Are Still Employed With The Company?


2 Answers

Anonymous Profile
Anonymous answered
People are under the impression they can take their accounts, and just pay the penalty and taxes. Not so, Usually... For most retirement plans, you MUST either:

Sever employment, Reach retirement age, or be permanently disabled in order to close the account. And taxes and fees will still apply if under 59 1/2.

Some plans allow you to take a loan against it, but plans vary so check yours. Hardship withdrawals are allowed for the following events:

To pay for a down payment on your first home.  
To avoid eviction from your residence.
Pay for your education.
Pay medical costs not covered by insurance.

Good luck
nettie Profile
nettie answered
Yes you can,but think taxes....good luck

Answer Question