Anonymous

Do I Have To Quit My Job To Collect 401k?

5 Answers

Babz Bell Profile
Babz Bell answered
There are a number of ways you can collect your 401k fund, but before taking any of them into account it would be wise to check the policy surrounding your 401k. This is because different companies and employers have different policies and what might apply to one person may not apply to you, and with something as important as a 401k retirement fund, you need to be sure you aren't cutting any ties or leaving yourself short.
As you stated in your question, one way of claiming your 401k is by quitting and leaving your current job. Another time you will be granted access to your 401k is if you suddenly become disabled, for example, you are suddenly struck down with a disability that can prevent you from working and carrying out normal, every day activities.
401K funds are also released if the owner of the 401k passes away. In this case, it is usually passed on to the spouse or to the family.
Other than these reasons, you will find it quite difficult to claim your 401k before you hit the legal age to claim the money, which is currently 59 and a half in the United States. As soon as you reach this age, your 401k plan then comes to an end and you are granted the money.
A 401k is a kind of savings account for retirement which is in place in the USA and when it was launched, was seen as an alternative to the standard retirement pension that was currently given out to American citizens of the official retirement age.
The 401k is a popular choice for workers, because as well as putting money away for retirement to a stable, trusted source, the 401k also reduces taxable income which is very helpful for the employee.
MONICA Profile
MONICA answered
No you don't.  You can get money out of your 401k anytime but I wouldn't suggest doing so because unless your 59 1/2 there are stiff penalties for early withdraw.  If you want to quit your job you still get to keep your 401k.  At that time it is best to speak with a financial advisor and get the money rolled over into a regular IRA so that you won't have any early withdrawal penalties.
Anonymous Profile
Anonymous answered
My husband wants to take a hardship loan on his 401K plan.   His job is telling him that he has to quit his job   before he can get his money.   Also when he asked about transferring his money to a IRA account and he was told by his employer that he can't.   Is any of this true?
Ray & Paula Aldrich Profile
Mail to: mail to: [email protected] Answer to same Question. My wife needs to close her 401K as we can't afford the payments any longer. This the second time now the first was last Sept and she was told then that the only way to close it was to quit her job. The first time I had a bad feeling in the pit of my stomach. Three - four months later the market crashed and we lost over 7 grand which should be their responsibility. Now this time we simply can't afford the payments and again they tell us the same thing. Quit your job and then you can close your 401K.She's got over fifteen yrs in this job why should she quit her job to satisfy the in vestment Co. Who has her money. She doesn't work for them,they work for her. If she wants to draw every last red cent out pay the penalties and throw the rest up into the air for the wind to scatter that should be her right to do that. If anyone is qualified to answer this who is the one who's right and do I have any legal recourse for being denied the right to protect what is our. We have documentation that shows we tried to cancel the 401K and their denial should be proof of their acceptance of responsibility. Ray & Paula
Anonymous Profile
Anonymous answered
I quit my job and now thet unio and employer will not allow me to cxollect my 401k and pention for 6months because of a termination clusse

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