On top of taxes, the IRS slaps you with a 10% charge for withdrawing early from a 401(k), even in hardship cases. It’s a deliberate deterrent that you should heed. Let’s say you withdraw $5,000 in retirement savings as a down payment on that Subaru. That 10% penalty means “you just gave $500 away to the government,” Meadows points out.
Don’t Raid Your 401(k)!
After five years of experience leading a TPA call center in North Carolina, Andrew decided to move west to explore parts unknown and follow his passion of helping others. Walking through the doors of Ubiquity Retirement + Savings, formerly The Online 401(k) for the first time, he knew he’d found something special. Continuing to delight clients and partners alike and 10 years later, Andrew has been able to develop new teams, co-found a non-profit of strategic alliances, co-produce a hard-hitting documentary about the looming retirement crisis, and still had time to spread the savings gospel far and wide. Using social media and actual media alike (Wall Street Journal, Fox Business, PlanSponsor, and more), you’ll find no one who likes talking retirement more than this guy!
February 2, 2017 at 12:24 pm