Need some help

[fed up]

I started a 401K last year and I'm over 60. What are ramifications if I make a withdrawal on pretax deposits? Can it be done? Don't need the money but I forget what happens after 59 1/2. Thanks.

 

[marindependent]

Would need to know why you need the money out? I believe there are new hardship withdrawal rules which may work. A lot of has change recently, so when researching it look for current information.

Here is a Solid Article

 

[titeye]

Yes and No. Even though there are no tax penalties on withdrawals after age 59 1/2, 401k's are sponsored by employers; therefore, the plan will specify what you are allowed to do while you remain an employee. If they disallow a withdrawal, you should be allowed to borrow up to 50% of the value. Any amount you fail to repay will simple be classified as a distribution of income. Since you are 60 years of age, there is no premature distribution penalty. An unpaid loan would have the same effect as a withdrawal.

 

[fed up]

Yes and No. Even though there are no tax penalties on withdrawals after age 59 1/2, 401k's are sponsored by employers; therefore, the plan will specify what you are allowed to do while you remain an employee. If they disallow a withdrawal, you should be allowed to borrow up to 50% of the value. Any amount you fail to repay will simple be classified as a distribution of income. Since you are 60 years of age, there is no premature distribution penalty. An unpaid loan would have the same effect as a withdrawal.

Thanks. Did a bit of research and agree but would have to check if employer allows withdrawals. You never know, might have to take an unplanned vacation.