The Motley Fool Discussion Boards

Previous Page

Personal Finances / Credit Cards and Consumer Debt

URL:  https://boards.fool.com/i-would-not-take-a-withdraw-from-your-401k-34646605.aspx

Subject:  Re: Cash out refi or early ira withdrawl? Date:  10/21/2020  10:44 AM
Author:  Davis32Fool Number:  312951 of 312970

I would not take a withdraw from your 401K because it is designed to put money or savings into your 401k account from the net or untaxed portion of your paycheck. If you take a early withdraw you will be charged a ten percent penalty if your are under the age of 59-1/2 or younger. Also when you pay back your 401K plus any interest you will be paying yourself back from the gross portion [already taxed]of your paycheck, meaning that you are paying double tax on 401K due to the fact that they will tax you when you someday take a withdraw after retirement. If you have another option I would take it. I hope this helped. Good luck.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us