I%26#039;m planning a cross-country move. I have worked for my currently employer for 6 years. My girlfriend gave me the ultimatum of moving out there so I must go. I don%26#039;t have a job lined up, but am confident something will happen once I get there. Thing is, my spending habits have been absolutely AWFUL and I only have a few thousand dollars and nearly 6k in credit card debt. I figure if I can make a mass withdrawal from the 21k I have in my fidelity 401k, I can pay off that debt and have cash to live if I don%26#039;t get a job right away. So my question is, being way under 59.5, how much could I get total after taxes and penalties, of that 21k? and is this just a totally bad idea to pay off my debts and make sure I have cash to live off of? I figure my 401k isn%26#039;t going to grow that much anyway. And yes, I sincerely do anticipate changing my spending habits for the better. I just don%26#039;t want to arrive there broke and with credit debt.
If I have 21k in my 401k, how much will I get if I take it all out? I%26#039;m only 28?
You would pay a 10% penalty so $2,100 plus the 21,000 would be added to your income for the year which means you would pay regular tax on it as well and probably at a higher tax rate than you other wise would. Fidelity will be required to take out 30% to pay taxes and you would need to wait until you file the years tax return to get back any overpayment, or of course pay any underpayment. This means you would currently recieve $21,000 - 2,100 - 6,300 = 12,700.
This is a bad idea if you must move I suggest you see how far you can go on the money you have and only do this as a last resort. You may get lucky and find a job quickly and not need to take this money out at all. At that point you have a choice of leaving the money in the 401k or rolling it into an IRA tax and penalty free, of course the money still would have the same penalties if you take out before 59 1/2.
By the way when you say this money won%26#039;t add up to much anyway, if you figure an 8% average growth rate which is below the S%26amp;P 500s average growth of about 10.4% you would have $334,000 by the time you turn 64. Not that small a sum of money. At the average 10.4% it is close to $650,000 at 64 thats the magic of compounding. You have done well to start early with your 401k you should do your best to keep it. Remember even though these sums sound like a lot inflaition is compounding also so great start but you still need to keep working and you should try your best not to have to start over.
Good Luck
If I have 21k in my 401k, how much will I get if I take it all out? I%26#039;m only 28?
As told, you would pay about 40% in taxes. As far as your girlfriend, you can always get a new one and keep your job.
If I have 21k in my 401k, how much will I get if I take it all out? I%26#039;m only 28?
My friend please don%26#039;t go ...if she gave you an ultimatum that equals divorce or breakup in the long run....you gotta list the pros and cons of the situation. if you go and she breaks up with you ,man your screwed......you%26#039;d lose everything...your asking for help on here ..which means you gut is telling you to stop and think about this,,,plus no job credit will be ruined...you will become a diffrent person.. a person she wont like ...ive seen it happen to many times...and to myself also...The best answer is to find a new girl...trust me dont make a mistake like the rest of us...shes not worth it ...and if she willing to ruin you like that .and control you ...control will be a big issue lol....no job no money maxed out credit ....she will own your balls....just dump that death trap ...good day
If I have 21k in my 401k, how much will I get if I take it all out? I%26#039;m only 28?
postpone the wedding and see if it is true that distance make the heart wonder or fonder == mean while keep you job and get you debts under control == no one should make a major change like this heavy in debt == but back to your original question since love is blind == off the top of my head lets say 2100 for fees plus taxes maybe you would net 14K!!!
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