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Asked 6/11/2009
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Need to cancel our 401k It seems wrong that I lost my job do to a work related injury and now the decison is I can only work partime and we are about to lose our house and there is money just sitting in a 401k that would get us through until my settlement is in hand.
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Answer 1/3 - Submitted 6/12/2009
In most cases, if you no longer work for the employer (plan sponsor) you can immediately withdraw the funds, paying the 20% federal tax (and 10% penalty in most cases when you file your taxes).
Some plans do have a wait period.... Are you having a problem trying to withdraw the funds?
If you disability is permanent, and you have an award letter, or since you were terminated -if you are over 55 the 10% extra penalty will not apply...
Not sure of your exact question.....
Answer 2/3 - Submitted 6/12/2009
The 402k is my husbands. He is over 60 and still workiing full time and a part time job. I just started working parttime this week and will not recieve my first paycheck until July. I am not allowed to work more. How can we stop and pull the funds from his 401k so we don't lose the house between now and when I get my settlement and pick up all the hours I am allowed to work?
Answer 3/3 - Submitted 6/12/2009
Check with the administrator MOST plans allow withdrawal after the age of 59 1/2 for an inservice withdrawal...
Also.. MOST plans allow for hardship withdrawals.. though for this you would have to be facing foreclosure already, and you could only withdraw the amount needed to stop the forclosure...
So I would call the administrator.. and ask if the plan allows for in service withdrawals after the age of 59 1/2... if they do... you should be able to withdraw.. Each plan is unique and the employer (sponsor) sets the provisions, so they are all a bit different.
This is a common provision.. so hopefully this will help you... The administrator cannot give you $ amounts, but should be able to send the forms per your request if it is allowed.
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I have about $4,000 dollars in my 401k,i live in oregon. i have a loan balance of $1,300 dollars on it. can i still cancel my 401k? i broke my leg and need the money too keep my house! please advise! thank you,and how long does it usually take if you can cancel to get your money?
I want to cancel our companies 401k plan entirely. the 3rd party administor we use wants to charge an astronomical fee to do this. is there another company we can use to cancel the 401k plan? if yes, who can we use? i would like to know the names and phone numbers if possible. thank you.
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