Anyone Ever Done This

[Hellion]

Due to my work not paying enough,let alone the POS car that I drive is costing me too much,I have decided to cash out my 401-K since I would rather get this caught up instead,anyone ever been in this situation before?

all I know is the plan I have is through AXA Inc.

or claim my entire gross pay for 1 month

[SuZQZ]

My only experience was when I switched jobs and transferred my 401K from the old plan to the new company's plan. I held out 2K of the total for bills. The 401K company pulled 20% automatically towards taxes, penalties, etc., and I will have to claim that money as income on my 2007 tax return. Are you going to take a loan from your 401K and make installments to pay it back or are you going to totally cash it out? Cashing it out means paying penalties and getting taxed on the income. If you are able to take a loan against it you avoid penalites and taxes and it's usually a small interest rate. Downside is that the loan amount is usually only a max of 50% for the total of the 401K.

You should give AXA, Inc. a call and see if you can speak to someone about your options.

[Reaper]

I did that once when I quit the pet supply warehouse business. It went on my taxes as extra taxable income. Stuck another 3 grand extra on my yearly income. Kinda hurt when I did that. This time I have about 6 grand available from my last company's 401K and my current one does not have one available. So I contacted my own bank to setup an IRA account which is giving me a decent return of 5.1% for a year, which equals out to be $300. Not bad for having the money sit in the bank. I also have the option of continually entering money into it so I still contribute. I did, however, think about cashing it in and paying off my school loan and a few other bills. But I think I will get to that sooner or later this year. I would have a harder time trying to get myself to start another 401k just to make up for what I used up. So I decided against cashing out.