Should You Cash Out Your 401(k) Retirement Account?
Episode description
Should You Cash Out Your 401(k) Retirement Account?
In this episode of Techie Personal Finance Bootcamp, we explore the critical question of whether you should withdraw from your 401k. We discuss common reasons for considering a withdrawal, such as emergencies and market fears, and highlight the financial downsides, including taxes and penalties. The episode also covers alternative solutions like 401 (k) loans and emphasizes the importance of informed decision-making to avoid long-term financial stress.
00:00 Intro
06:24 10% Penalty
07:04 Federal & State Income Taxes
08:27 Special ROTH Features To Avoid Penalty and Taxes
09:04 Less Resources, Less Time To Build It Back
11:53 401 (k) loan alternative
13:10 Different Exemption Rules To Be Aware Of
14:03 Separation after age 55
15:24 Home Equity Loan/ Line of Credit
17:20