I want to find a way to legally access my funds from my 401k account; I've been told I can only do so if: (1) I'm paying for college; (2) I'm about to lose my house in foreclosure; or (3) I lose my job.

Is this true, or is there another way? Help!

-- Lisa Noland (ldnoland@yahoo.com), October 04, 1999

Answers

Yes, that's true.

If you quit, you could have them cut you a check.. But you would pay the 28% (insert your tax bracket here) plus 10% early withdrawal..

In my humble opinion, I'd rather give 38% to the market instead of hand it to Uncle Sam. Personally, I re-allocated my funds into 'short term' low risk bond funds WITHIN MY 401K. Short term bonds give very little interest (about 5%), but since the term is short, there is little chance of interest rate fluxuation.

For these bond funds to fail, the US govt has to fail with the major banks.. If so, then cash/gold is pretty useless and the only good thing you can have is preps (In my opinion).

Take it easy.. don't do something rash like liquidate your retirement money and hand the govt. your hard earned cash.

Talk to a professional about distributions if you are bent on this.

Bryce

-- Bryce (bryce@nospam.com), November 01, 1999.