Quitting job to go to school can anyone help with 401k withdrawl for extra $?
Daisy asked:
I am planning to quit my job to go back to school to get my Masters and I was told I could take out my 401k for some extra $. How does this work? I have only been at this job for about a year. Is it even worth it? Please help!
This entry was posted
on Friday, February 27th, 2009 at 12:00 am and is filed under Personal Finance.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
I am planning to quit my job to go back to school to get my Masters and I was told I could take out my 401k for some extra $. How does this work? I have only been at this job for about a year. Is it even worth it? Please help!
March 1st, 2009 at 5:25 pm
I know if draw on your 401K there is a huge penalty. Instead of cashing in your 401K, can you take a loan? If possible, you may be better of financially.
March 4th, 2009 at 11:19 pm
Not worth it. You can withdraw the money as a loan, but if you dont pay it back you will be taxed heavily on the withdrawl
March 7th, 2009 at 12:26 pm
If you worked there a yr, you probably didn;t save very much in the 401k and withdrawing it after you leave - you’ll lose a good chunk of it to taxes and penalty - anywhere from 20-35% probably depending on your federal tax bracket