Originally Posted by
Pineapple Guy
Thank you for proving my point.
And, ironically, thanks for letting me win the bet.
See the bold below, you admit, you can cash out a 401K.
Originally Posted by
Pineapple Guy
OK - I'll quit toying with you.
You (and apparently your brother) were able to cash that out ONLY because you (and your brother) no longer worked there. Had you still been an active employee of the car dealership, IRS regulations prohibit you from withdrawing the elective deferrals you made to the plan until you a) reach age 59 1/2, or, b) qualify for a hardship withdrawal. You are permitted under certain circumstances, if the plan permits, to withdraw the contributions your employer made, but not those you made. And since for most of us, our 401(k) primarily consists of money we've contributed, most of us have a substantial restriction on our ability to "cash it out" while employed.
Because remember the original bet:
Originally Posted by
forgot to bid
You most certainly can close a 401K and cash it out.
You do take a 10% hit and you have to pay the taxes on it but otherwise you can do it.
Originally Posted by
Pineapple Guy
Wanna bet?
Now I was talking strictly about cashing out 401Ks, you were talking about doing it while employed which you can still cash out with stipulations. Question for ya though, in your original response...
Originally Posted by
Pineapple Guy
You might check with the IRS before making such silly statements. You are wrong.
why didn't you say right then in there, you can cash out a 401K while employed with said company but only for certain reasons such as hardship or if you're above 59.5?
I ask because why not give a full answer? I mean even Slow gives us full answers from the beginning. Everything that came after was completely unnecessary
... including losing the bet with me.