Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Why can't I liquidate my 401k? I'm not allowed?
Because I have some debt, I want to liquidate most of my 401k. I have 11,000 of my own money in (doesn't include my company's matched amount that I can't touch until I'm vested. I owe about $9,000 debt that I can't wait to get rid of!
I tried to liquidate my 401k. I realize that it will cost me serious tax penalties and other financial penalties, but I'll take them to be completely debt free - besides, I'm losing SO much money on my 401k - I might as well make it work for me somewhere else. (I'm young and financially disciplined now, and still have time to build my retirement.)
However, when I tried, they told me that I have to have an approved financial hardship to liquidate. This means that I'd have to almost lose my house, or have a medical condition, or need to bury a loved one. And they want the proof, or I can't liquidate.
Is this right? This is my money! Is this legal? Can they do this? How do I get my money?
4 Answers
- 1 decade agoFavorite Answer
You may be able to borrow against your 401k assets and pay yourself back. Just be sure you are disciplined enought to do so!
- Anonymous1 decade ago
The government has two primary functions.
1) Redistribute wealth from those who are relatively productive to those who are less productive. Along the way they extract their cut.
2) Manipulate citizens (individuals) into doing what the government thinks is the government's best interests.
Back when Nixon imposed wage and price controls, circa 1970, someone commented that there is no such thing as PRICE controls. There are only PEOPLE controls.
Ask your local bar association to refer you to an attorney which handles estates and 401k issues. You should be able to get a half hour free consultation.
Even though the market is down, which means your 401k is down, you could be selling at or near the bottom.
Can you adjust the holdings in your 401k? The best long term stock to hold right now is Berkshire Hathaway (BRK-B). Warren Buffett has a long term average annualized gain of 18.1%. It fluctuates from 8% up to 40%. This is his time to shine. He recently made some excellent buys at very low prices.
You might also diversify globablly with a stock like Rio Tinto (RTP).
You didn't give your age but here are general points. Let's say you are 25. You have a life expectancy of 85. There are stocks like Walmart which have increased in value 10x for the last several decades.
If you invest $1000 for 30 years, you have 1 million. If you invest $1000 for 60 years, that's one billion.
This also means that every $1000 you spend on non-essentials is a wasted opportunity to become a billionaire.
Good luck,
- CarlD
- 6 years ago
This Site Might Help You.
RE:
Why can't I liquidate my 401k? I'm not allowed?
Because I have some debt, I want to liquidate most of my 401k. I have 11,000 of my own money in (doesn't include my company's matched amount that I can't touch until I'm vested. I owe about $9,000 debt that I can't wait to get rid of!
I tried to liquidate my 401k. I realize that it will cost...
Source(s): liquidate 401k allowed: https://shortly.im/O6oN7 - Anonymous1 decade ago
They are correct. Most 401(k) plans do not allow premature withdrawals if you are still employed with the company. Read your plan provisions.
Source(s): www.401k.org
