Anyone taken money from their 401K?

Has anyone had to take money from their annuity or 401k in the last year or recently to stay afloat? My boyfriend is considering borrowing from his annuity to pay back but it’s a last resort thing… I’m just seeing if anyone regret it or happy they did it and had that ability to.

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My husband did it for our house down payment. It was very beneficial & worth it to us right now. They did take taxes out immediately though.

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We did a hardship on my husband’s after the mine I work at caught fire and I was out of work, definitely a last resort but it saved us from losing our home.

You can do it as a hardship.

We just took a loan out on my husband’s 401k to put with taxes to pay everything off and get caught up. We pay back $130 every 2 weeks plus what we put in. It has made everything easier not being behind and choosing what to pay and what to put off. If it isn’t going to hurt you when you pay it back out of your check. I would do it.

I did this a few years ago, got a tax document to file the payout for the following year.

I’ve taken it out directly and I’ve taken loans from it. Dave Ramsay may disagree but we have to do what we have to do to survive in this economy.

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Verify firs that you can.

Some of those accounts won’t let you borrow against them, others will only allow it for certain reasons, and others will allow it for whatever, with a fee and repayment.

I would discuss the pros and cons and consider other options first.

That depends where you are at in life. I would talk with human resources rep. first. They tend to see both sides of the coin.

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Loans are ok, withdrawal is not. I’ve done loans and it’s worked out good for me. However make sure it is a loan. You don’t have to pay taxes on a loan vs withdrawal. If you don’t pay the loan back, then you will have to pay taxes on the loan as they will change it to a withdrawal.

I did and am really regretting it

We did back in 2020 when I had a high risk pregnancy and couldn’t work and last year to pay down some medical bills I was drowning in. The first time we did a loan and made payments to pay it back so it goes back to his 401 but the second time around we just did a withdrawal and had taxes taken from it

Mine allows me to take 1 loan at a time and have a monthly payment taken out of my paycheck. If you do a hardship (don’t need to pay it back) you’ll get penalties when you file taxes next year.

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Yes I have. Depending on what you rake it out for depends on tax. You can do a hardship- you do not have to pay back, a loan you pay back small payments out of each check- so no penalties.

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You can borrow a small amount from your 401k and as long as you pay it back you shouldnt have a tax penalty

If you are under 59 n half in years you will pay a penalty plus taxes if you are still at the job you will have to pay youself back ,if you were vested you can take if not lose many variables play into this. if need for for a much needed thing such as medical,etc that otherwise you can’t afford to pay otherwise leave it as I have seen too many people when they quit or retire go through it fast

Yes we took a loan and pay it back we haven’t regretted it at all

We did a few years ago to pay for my husbands eye surgery. We didn’t regret doing it at all. We went the route of a loan.

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Follow Dave Ramsey. He has a video about 401ks

We did 2x last year and already did this year from 401k. Each time we get a 1099-R form to file for taxes. They taxe you on it come tax time.

They tax the hell out of it if you pull it early

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we did it back in i think 2016…we got a lower tax return cause of it…sooo beware of that

The interest you pay on it is actually paid to yourself. I’d recommend having the taxes paid when you take it out.

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Isn’t it sad that we’re not allowed to touch our own money :unamused::weary:

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I took a small loan out of my 401k and making small payments back out of my paycheck. It definitely helped my family

did last year in an emergency and owed a shitload of taxes

I did. I borrowed 7000. 00
And I pay it back via payroll deduction 68. A month. No penalties I don’t think. I was in a pinch and needed the money so details didn’t matter. I should probably find this out . Lol

I have and the IRS penalized the hell out of me. But I didn’t have a choice and I would do it again if I needed to take care of my family

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