@ Virginie When you say ”put in my retirement plan,” does that mean your 401k or an IRA? Anyway, from your 59 1/2, you can access the money without penalty. Hi Bill – Since you are over 59.5 years old, there is no 10% prepayment penalty. But you still have to pay normal income tax on the amount of the distribution. If you contributed without deductible to the plan, a proportionate portion of the distribution would not be taxable, but all tax-deferred contributions and plan income would be subject to tax. Forty-eight percent of people who experienced a difficult withdrawal did so to buy a home, according to a study by the Investment Company Institute (ICI) in the spring of 2000. Other reasons include medical emergencies (28%), bills or daily expenses (21%) and education (7%). No Corrine, he can make money and continue with the 72t. I use the turbo tax and they keep changing me from under 59 and a half when I withdrew the money from my Fidelity account after insisting I was over 59.5. I did it in the same calendar year that I turned 59. I don`t know why it`s so confusing, I have proof that I withdrew this money after I was 59.5 years old. What is the law that I reviewed on the IRS website and I don`t see any problems. Hi Jeff, I worked for a company that went bankrupt and I can`t find any trace of them anywhere.

I had a 401K plan with about 4,5000 and recently got a new job offering a 401K. How could I find where to find this old 401K and possibly transfer it to my new one? Thank you Hi Luanne – If you are still employed by the same company where you have the 401k, they may not allow you to withdraw the money until you leave the company. But on the tax side, since you are over 59.5 years old, there is no early retirement penalty of 10% for the amount collected. However, you will have to pay taxes on the withdrawal, you may want to take the money over several years to minimize the tax payable. This is all the more important as you still work and earn money. Will your employer allow you to take out a loan on the plan that you can use for the down payment? On the other hand, if you can borrow, it would be your avoidance of taxes and penalties. However, the loan amount is capped at $50,000 and should have a repayment plan. The legally permissible reasons for requesting a withdrawal for difficulties are very limited.

And your plan is not required to approve your application, even if you have a reason approved by the IRS. I have been unemployed for 1 year and a half due to a work accident injury and I am on social security disability. I`d love to start taking some of my 401k to help monthly. I am 61 years old and I am 100% detained. I called my employer`s bank where the access is served and was told I couldn`t do it until I was fired? I was informed that I could take what I needed, but that I would have to pay 20% fed. Tax and no penalty?? Does that seem right to you??? I work at Walmart in Sams, no I don`t want to know what`s going on with my 401k plan, since I don`t work there anymore, I can pay for it, I`m 63 years old and I`m still busy. I want to withdraw money from my 401(k) to pay off my mortgage and make a down payment on a new home. What kind of penalties or tax issues could I possibly experience in the process? Hi Sara – Are you just considering withdrawing the money to buy a house? If this is the case, they must withhold 20% of the estimated income tax. If you plan to transfer it to an IRA, you`ll need to share it with them and see if that changes the answer. Please discuss this in detail with the plan administrator and your CPA. Either way, the tax implications can be enormous.

There are bizarre government plans that have such a requirement. My husband retired at the age of 55 and used the IRS separation rule for 55 years and takes distributions of his 401K without penalty. Would my husband be able to continue the distributions if he took a temporary job or started a business? Hi Kaci – According to the IRS, withdrawing money from a 401k to buy a home is not an allowable difficulty, at least not to waive the 10% penalty. Are you sure that`s not the underlying problem? I was fired from my job and had to withdraw my 401K money. I haven`t found a job in over 8 months. I paid a 27% tax on my payment and it is said to have gone in the direction of federal taxes. Will I get my tax money back if I file my taxes, or do I have to pay more money? I was unemployed for 24 weeks and now it`s over and I haven`t been able to find a job yet. It can be very satisfying to receive your 401k instruction in the mail and see the right scale you have created. After contributing to it for several years, it becomes easier to imagine how much you can do with that money when you retire.

I am 64 years old and I am a tenant. Is it a mistake to remove enough of my 401k to avoid pmi? I owe about $110,000 for the house I now live in. I have about 250,000 in my 401k. I am still working and intend to do so for another 5 years. I will be 61 years old in about 1 year. Can I take half of my retirement to buy another home? I want to downsize. What would be the taxes and penalties for that? Thank you, Kathleen @Patrick Personally, I think you are overreacting to the fact that the government is taking away your 401k. When you withdraw the money to pay off your mortgage, you are giving the government a huge tax gift in the taxes you pay when you withdraw your 401k. Either way, you have full control and can decide to pay it back if that`s the peace of mind you need. Be very careful about this, as penalties for pension and retirement errors can be high. My husband separated from his job a few months ago. It was fully invested after 13 years of employment.

He filled out paperwork to take a distribution to pay large medical bills. After receiving the documents, the company now informs him that there is a one-year restriction on receiving the money, either for distribution or to transfer the money to a new account. Is it legal? I always thought that as soon as you were no longer employed by a company, the money of 401,000 was yours. Planning to retire at 62 years and 4 months will have about 215,000.00 in my 401K plan and 40,000 is a retirement plan. I want to claim Social Security in retirement, but I don`t know if I will take $50,000 to deposit it into my bank account, the NSS will say that I can now only collect a portion of the $1800.00 per month that I would normally receive. Hi Karen – You are not entitled to your husband`s disability penalty exemption (it must be your disability as the plan owner). However, you can qualify separately from the service with essentially the same payments. I think that`s what they`re talking about.

Talk to your accountant or consult one if you don`t use one. There is something of a grey area here because it seems that you are still employed by the original employer. Hello, I am 55 years old and I am in the middle of a divorce. .