401 k cash out??
During the pandemic can we cash out our 401k without any penalties?
Terry Says
No. And don’t even think about it! If under 59-1/2 you’ll pay a 10% penalty,and ordinary income taxes on all of it, AND you’ll lose all future growth — which will come if you stick with it long enough!
Not to mention that you can’t cash out while you’re still working there; you can only take a loan — which becomes a withdrawal if you lose your job. Then you owe taxes and penalty– and you lose the ability to roll it over and keep the money growing!
