Kekoa

I know there are about 34% in penalites and fees to pay, but has anyone cashed theirs out? In my situation, my employer was matching my contribution 100% so basically I'd be giving them back a portion of their own money.

If so, what did you do with the money?

05TurboS2k

Think of it how you will you're not giving back a portion of THEIR OWN MONEY.

I'd think of it completely different, I don't suggest even considering it unless you must or you have some "sure" investment with the cash.

05TurboS2k

Bert or someone will probably chime in.

I've had companies match 100% unlimited also, that money is MY money. It's a part of why it was worth working there. Consider it money from your paycheck. There's no such thing as "free" money in this world imo.

just my .02

the s2k dude

i cashed out of mine.. i left the company and was no longer building that particular fund so i just put it in my acct. paid some credit cards or something.

if your still working for the company then leave it.. if not then transfer it to ur new acct or take it out.. ur old company will more then likely start charging you to keep it there.

Spokes Man

You will pay a hefty penalty if you cash out or withdraw from your 401k before age 59 1/2. It's the Fed government that gets the penalty $$...not the employer. After age 59 1/2, you pay Fed & State taxes on the amount you withdraw since it was tax deferred. Some companies allow you to take out a loan for up to half of what is in your 401k account, and pay yourself back with interest using payroll deductions. However, if you quit or get laid off, they can call the loan.