Learn me something about 401k's.

[Gas One]

So ive been on my investment groups website trying to figure the shit out but i don't have my pin right now so i cant really access anything.

Most of my present jobs i didnt invest anything.

What exactly do i need to do to take this money?

Do i have to roll it over into my bank account, like a money market?

Or do i have to wait till the next quarter to change it?

Technically, I do not plan to live to see retirement.

So it would be really nice if i could like....realistically take out a thousand dollars of this shit. and buy a bunch of shit i don't really need.

is that possible?
is it a big issue, or as easy as calling the representative?

do i have to wait till i leave the company to get my own money?

exscuse my ignorance...i really just dont get how...tangible this money is yet...

 

[MaddDogg]

You cant take $$$ out of your 401K unless you want to get hit with a steep penalty.

Most 401Ks work like this:
Broker negotiates deal with company
Company tells employees
Employees drop a certain % of every paycheck into their 401K
MOST companies make a 50%, 100%, or 200% contribution for every dollar an employee invests
Money in 401K makes interest over the years
Employees have a retirement fund when they are done

I also believe, but dont qoute me, you can actually use a 401K early without penalty to purchase property.

 

[Gas One]

yeah i get most of that shit, i just don't get why i cant take my own money. i would understand not taking a percentage being that your employer has also contributed to your earnings...

i wonder if it can only be used for purchasing property and maybe businesses..so i can lie

well thats kinda weak. so what if i leave my employer? or i decide to not have money deferred from my paycheck every month? (which is an option)

does it just sit there until i leave and my paycheck goes back to what it was before (besides whatever tax i saved)?

is there any ...uhm whats the word..penalizations for that penalty? like am i going to have less money contributed? or are they not gonna wanna do it?

 

[ColdBlooded]

If you leave your employer you roll it into your new 401(k) or pay tax on it and roll it into an IRA.

Why are you contributing to your 401(k) if you don't want it? Just stop putting money into it.

If you take money out of your 401(k) before a certain age there is a penalty. If you take money out of your 401(k) you have to pay taxes on it.

 

[Gas One]

its not the contribution thats the problem, i just thought i had more control over what i thought was rightfully mine.

my contribution is just set pretty high so it built up over 2 + years enough for me to want some.

 

[thascary1]

if it's a current employeer you should be able to take out a 401k loan that you pay back to yourself via automatic deductions out of your paycheck...no taxed or penalties

 

[kayvee]

here gas..i just showed someone else this today when talkin about financing school:

http://beginnersinvest.about.com/od/401k/a/aa122104a_3.htm

~k.

 

[Gas One]

word...im gonna look into that...good looking out....i sorta figured something would be possible...especially with taxes coming back..

edit: thanks kayvee im checking it out now

 

[MaddDogg]

Yea thats a good read Kayvee.

 

[Gas One]

damn, it says all 401k loans are subject to 10 percent tax.... but then goes to say a 10,000 loan you might receive 6,500-7500 if i read correctly...hmm..i might be better off fucking with my credit union...yeah def a good read