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Im a former employee from PLS finanical and im try borrow money from my 401k how do i do that?

Jun 02, 2015 by Sherese in  |  Flag
4 Answers  |  4 Followers
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1 vote

Usually, you can not borrow unless you are currently employed. You may need to roll it into your current employer's plan in order to borrow.

Comment   |  Flag   |  Jun 02, 2015 from El Paso, TX

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Sherese,

Sorry, but i have to agree with Mr. Defrance on this one. You will have to be currently employed with the company in order to take out a loan on your 401k balance.

Comment   |  Flag   |  Jun 03, 2015 from Lititz, PA

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Sherese,

I agree with both of the answers above. I would just add that if you are currently unemployed or your new employer does not offer a 401k and you have an emergency need for cash please don't cash out your entire balance as that will trigger a 10% early withdrawal penalty if under 59 1/2 + taxes at your highest bracket.

Do a tax free rollover to an IRA account and from there take only the portion that you need, a 401k will not allow a partial distribution (on most cases). Your distribution from the IRA will be subject to the 10% penalty and taxes but the rest of the balance can hopefully stay in the account and fulfill its mission to help you in retirement.

Best of luck!

Carlos

Comment   |  Flag   |  Jun 11, 2015

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How old are you?

Comment   |  Flag   |  Jul 16, 2015 from Phoenix, AZ

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