How Do You Cash Out A 401(K)?
Section 401(k) of the Internal Revenue Service (IRS) tax code sets forth the provisions for tax-deferred retirement savings plans offered by employers to employees. The 401(k) is a powerful savings tool for individuals who have plans for retirement beyond continuing to work. When financial times are hard, people look to their 401(k) to cover expenses they’d otherwise have to leave unpaid. While a controversial issue among financial professionals, you can access your retirement funds in a number of ways, including pulling all the cash out of your 401(k). Review your current 401(k) statement. This document provides your current balance, earnings information and ways to contact the company holding your funds. Determine if you have enough to cash out of your 401(k). Although you can take any amount, smaller sums may not be adequate for your needs once you subtract tax withholding and the 10 percent IRS penalty for withdrawing retirement funds before you are 59½ years old. Read your contrac
