Welcome! | Ask A Question

 
 
 
 
Question

Asked 7/22/2008

Can I close my 401k plan and have the money distributed to me while still employed by the company I started the with?

I would like to close my 401k plan and have the money sent to me before age 59 1/2 and while I'm still employed by the company I started the plan with

 
 
 
 
 
Answers

Answer 1/1 - Submitted 7/24/2008

That all depends on the particulars of the agreement you signed when you enrolled in the 401K plan with your company. Normally you "can" withdraw your money whenever you'd like (after all, it is your money) but depending on the circumstances, you could be subject to an early withdrawal penalty. You will also have to pay federal and state income taxes on the amount you withdraw. When you make an early withdrawal of a 401K plan, it also reduces the options you have for disbursement of the funds when you retire for real.

If this is a large sum of money, you could end up losing 30 - 40 percent of it in company early withdrawal penalties and government taxes, since the amount of the withdrawal will be added to your annual income for tax purposes at the end of the year. If you have an emergency requirement for money, see if the plan will allow you to "borrow" money from your account instead of withdrawing it.

 
 
 
 
Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

 
 
 

Related Questions (Ask a New Question)

 
Can i close out my 401k account at any time even if i am still employed with the company i started it with?

If i am still employed with the company that has matched my contributions by 50%, can i close out my 401k retirement plan at any time ?

See Answers

 
Can a person withdraw funds from thier 401k plan while still a participant who is not of retirement age?

I want to pull money from my 401k plan to pay down debt.possibly to make repairs to home. my employers plan administrator says that i can't do that. i've heard people say they pulled thier money out. i need to know if it can be done while i'm still employed at this company and where...

See Answers

 
Is it legal for ex employer to hold you 401k retirement money ?

I was layed off back in 6/09. when i went to roll over the 401k plan funds i had, i was told that the money could not be touched because the company still had me listed as employed. how long can they hold this money for. i no longer work for company .

See Answers

 
Related Questions

Can i close out my 401k account at any time even if i am still employed with the company i started it with?


If i am still employed with the company that has matched my contributions by 50%, can i close...

 

Can a person withdraw funds from thier 401k plan while still a participant who is not of retirement age?


I want to pull money from my 401k plan to pay down debt.possibly to make repairs to home. my...

 

Is it legal for ex employer to hold you 401k retirement money ?


I was layed off back in 6/09. when i went to roll over the 401k plan funds i had, i was told...

 

401k cash out.


My husband’s company cancelled their 401k plan as of the end of june 2010, 3months ago, and...

 

401k disrtribution at 59 1/2 and still employed


I am 59 1/2. i now that i have a right to receive a destribiution of my 401k plan account...

 

Company taken over, 401k being forced to new company plan


My company has been taken over and the previous 401k is being rolled into the new company...

 
 

See more 401k questions

 
 
 
 
 

Ask A Question

Ask a new question about
401k: