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Asked 11/6/2008
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Can I Cash out a 401K early while still employed at my current employer? I am currently working for a steel mill, age 42, fully vested account with Fidelity, can I take the penalties, pay the taxes, and close the account? |
Answer 1/6 - Submitted 11/6/2008
Answer 2/6 - Submitted 1/28/2009
People are under the impression they can take their accounts, and just pay the penalty and taxes.
No so, Usually...
For most retirement plans, you MUST 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.
There are ways for most employees to withdraw or borrow a portion in most plans.
Answer 4/6 - Submitted 12/11/2009
Answer 5/6 - Submitted 12/12/2009
Answer 6/6 - Submitted 12/12/2009
The age to withdraw funds is 59 1/2. However, you can withdraw some funds if you can show hardship and need the money to pay bills or on medical expenses. You can also take out a loan form your 401k which you pay yourself back with interest. Otherwise, there are penalties and the government akes out on those.
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