How to protect money from 401k after cashing it?
I am at a point where I absolutely have to take the small amount of money I have in my 401k. Its a last resort.
My question is, if I withdraw the money, and my 401k company deposits the money into my bank account, should I be worried that creditors will find out I have that money and sue me or levy my bank account? Can they just take it immediately?
(I have about 7 credit cards that have been charged off more than a year ago, the highest amount is about 2 thousand, the rest are $800 or less).
I am between jobs at this time, and I will only be getting between 2K-3K.
Thank You for you time.
First of all, 20% will be withheld right off the top. When you
First of all, 20% will be withheld right off the top. When you file your taxes for 2011 there will be an additional 10% penalty if you are under 59-1/2.
Does your 401k allow you to take a loan? Mine did and that's how I paid my credit card settlements along with saving up some money.
If you find you must wipe out your 401k, then have them send you a check; don't have it wired to your account.
Thanks for responding. I know about the penalty fees, but right
Thanks for responding.
I know about the penalty fees, but right now its a necessity. I am in my early 20s so I plan to start a retirement savings again once I have paid for school and my taxes.
Thanks again.
No, they won't. Ten years ago I was in the same boat and cashed
No, they won't. Ten years ago I was in the same boat and cashed out $11,000 in rollover money. Do what ya gotta do to survive.