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I am thinking about cashing out an old 401k and paying on my house. I am 57. I got the 401k when I was 54.

I want to fix and sell my house.

Oct 17, 2016 by Ricky in  |  Flag
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Larry R Frank Sr Level 20

Hello Ricky, in short, IF your old 401k plan permits you to withdraw money after age 55, then you can do so without penalty. Of course, any withdrawals are always subject to income taxes, so you should with hold taxes when you prepare the old 401k withdrawal documents. You can ask either your old employers HR, or the firm currently holding the 401k assets, what the rules for that particular plan are, AND for the form(s) to make the withdrawal.

For others who may be reading your question which may be similar to one on their minds, I posted more details about the age rules recently here http://blog.betterfinancialeducation.com/financial-planning/tapping-a-401k-55-or-59-12/.

Wishing you the best on the fixing up and sale of your house, Larry

Comment   |  Flag   |  Oct 18, 2016 from Roseville, CA

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Hi Ricky - Being permitted to do something does not mean you should. What impact will your 401k plan withdrawal have on your retirement income plan? Do you have a retirement income plan? You do not want to end up with a beautiful house and no retirement income. I recommend that you meet or speak with an objective, commission-free Certified Financial Planner practitioner. You can find CFP professionals at www.letsmakeaplan.org.

Comment   |  Flag   |  Oct 18, 2016 from Morristown, NJ

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