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stressmoney
LIF Zygote
Member since 10/16 11 total posts
Name:
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who talk to about 401K withdrawal, or to give me the best financial and realistic advice
I know you should not withdraw from its never a good idea etc etc.
I just need to know who I should be contacting about letting me know what will happen, what that means come tax season, if this is the best option for us right now.
Do I contact a financial adviser for this? Is this the best type of person to look at everything and say yes you are better off doing this rather than say doing XXX?
I need someone to look at everything and tell me what the realistic best option is and what the result will be if I do it.
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Posted 11/20/18 3:06 PM  |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
do you have an accountant who does your taxes normally? if so, they would be able to advise you i am sure.
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| Posted 11/20/18 3:16 PM |
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lmcmcl
LIF Toddler
Member since 2/15 484 total posts
Name:
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who talk to about 401K withdrawal, or to give me the best financial and realistic advice
I would ask an accountant. They would be able to tell you what your penalties and tax implications may be. I would hope the accountant can offer other options. I have suggested to people to do that only if absolutely necessary. (I am not an accountant or adviser. It is just something I believe to be true) Good luck.
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| Posted 11/20/18 3:20 PM |
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stressmoney
LIF Zygote
Member since 10/16 11 total posts
Name:
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
I do have an accountant.
I also need this person take in all aspects on what is going on in my life financially and currently what I am doing and tell me if pulling from my 401K is better than say just filing for chapter 7 bankruptcy versus a different option.
These are just examples I am giving to get an idea on the kind of advice I am really looking for.
Is an accountant still the best person to contact?
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| Posted 11/20/18 3:38 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
are you still employed at the company that you have the account with?
if the answer is yes, withdrawing it isn't an option.
you might have the option to borrow from the account (not all accounts even offer this).
the first step i would advise is to reach out to the financial institution that manages the account. find out what your options are within the plan.
then
talk to an accountant to find out what is likely to happen to your tax situation. usually, it's a 10% penalty on top of regular income tax on the money.
best of luck to you in finding what works for you.
eta: after reading your second post... talk to an attorney if you think something like bankruptcy is something you should be considering.
Message edited 11/20/2018 3:52:32 PM.
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| Posted 11/20/18 3:51 PM |
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Peainapod
Peanuts are here!
Member since 1/09 13591 total posts
Name:
Diana
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
if you are still employed with the 401K holder than you can borrow against it with no tax implications (other than the repayment coming out of your paycheck after taxes).
Early withdrawals are subject to federal and state taxes and I think when you file its like a 15% penalty.
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| Posted 11/20/18 3:58 PM |
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Eunyboo
<3
Member since 7/12 4376 total posts
Name:
E
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
I think I would talk to your accountant first. If that isn't an option, I would go to a financial adviser. If you don't feel like an accountant will help, maybe they can at least give you a referral to someone who can.
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| Posted 11/20/18 3:58 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by stressmoney
I do have an accountant.
I also need this person take in all aspects on what is going on in my life financially and currently what I am doing and tell me if pulling from my 401K is better than say just filing for chapter 7 bankruptcy versus a different option.
These are just examples I am giving to get an idea on the kind of advice I am really looking for.
Is an accountant still the best person to contact?
Yes they should be able to help.
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| Posted 11/20/18 3:58 PM |
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stressmoney
LIF Zygote
Member since 10/16 11 total posts
Name:
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
OK so I am looking at 3 different people either
an accountant
lawyer
financial Adviser
What exactly does a financial adviser do maybe that will help me decide who I should call.
I really need someone to look at all my finances and say this is your best option.
I have spoken to an attorney who deals with bankruptcy and he makes it seem like its no big deal to file for bankruptcy and I don't really know if I can trust that.
I want someone to say you are better doing XYZ rather than ABC. Without being biased or influence and I feel like a lawyer that deals with bankruptcy would just go with bankruptcy no matter what.
Also maybe give advice on how and what expenses that can be cut down.
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| Posted 11/20/18 4:00 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by stressmoney
OK so I am looking at 3 different people either
an accountant
lawyer
financial Adviser
What exactly does a financial adviser do maybe that will help me decide who I should call.
I really need someone to look at all my finances and say this is your best option.
I have spoken to an attorney who deals with bankruptcy and he makes it seem like its no big deal to file for bankruptcy and I don't really know if I can trust that.
I want someone to say you are better doing XYZ rather than ABC. Without being biased or influence and I feel like a lawyer that deals with bankruptcy would just go with bankruptcy no matter what.
Also maybe give advice on how and what expenses that can be cut down.
OK then maybe speak to a financial planner. I am sure they handle situations like this a lot.
Good luck!
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| Posted 11/20/18 4:01 PM |
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PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by NervousNell
Posted by stressmoney
OK so I am looking at 3 different people either
an accountant
lawyer
financial Adviser
What exactly does a financial adviser do maybe that will help me decide who I should call.
I really need someone to look at all my finances and say this is your best option.
I have spoken to an attorney who deals with bankruptcy and he makes it seem like its no big deal to file for bankruptcy and I don't really know if I can trust that.
I want someone to say you are better doing XYZ rather than ABC. Without being biased or influence and I feel like a lawyer that deals with bankruptcy would just go with bankruptcy no matter what.
Also maybe give advice on how and what expenses that can be cut down.
OK then maybe speak to a financial planner. I am sure they handle situations like this a lot.
Good luck!
I agree with this. I would speak to a financial planner for sure. They can help you go through everything and figure out the best option for you
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| Posted 11/20/18 4:08 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
If you go the financial advisor route, they must be a fiduciary. Otherwise they are the same as a car salesman in a different office. They are not looking out for you.
It would depend upon why you need the money to determine who best to talk to. Since you mentioned bankruptcy as a possibility, I would look for a bankruptcy attorney. You may be able to protect the money in your 401k depending upon what type of bankruptcy, and what else is going on.
Are you employed? If it is a current 401k you could take a loan, but know that if you left your job you would need to repay the loan in 60 or 90 days depending upon how they set up your plan. If it is a roll over IRA then there are penalties for taking out the money. Depending upon how you put the money in and what you are using it for, you could owe taxes on the withdrawal. It would really be in your interest to find an attorney who can give you specific advice for your particular situation.
Message edited 11/20/2018 4:11:12 PM.
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| Posted 11/20/18 4:10 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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who talk to about 401K withdrawal, or to give me the best financial and realistic advice
not all plans offer loans against the account.
i used to work for a company that managed employer sponsored plans.
i know that what you want is guidance in dealing with some problems. but if you decide to take a loan and then find out the plan doesn't allow them, you're back to step one.
i would start with calling the financial institution or your HR to find out if your plan even offers loans.
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| Posted 11/20/18 4:36 PM |
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stressmoney
LIF Zygote
Member since 10/16 11 total posts
Name:
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by LSP2005
If you go the financial advisor route, they must be a fiduciary. Otherwise they are the same as a car salesman in a different office. They are not looking out for you.
It would depend upon why you need the money to determine who best to talk to. Since you mentioned bankruptcy as a possibility, I would look for a bankruptcy attorney. You may be able to protect the money in your 401k depending upon what type of bankruptcy, and what else is going on.
Are you employed? If it is a current 401k you could take a loan, but know that if you left your job you would need to repay the loan in 60 or 90 days depending upon how they set up your plan. If it is a roll over IRA then there are penalties for taking out the money. Depending upon how you put the money in and what you are using it for, you could owe taxes on the withdrawal. It would really be in your interest to find an attorney who can give you specific advice for your particular situation.
This is kind of the advice I was looking for. I FMEd you.
Thank you everyone. There is more to the story that I don't want to write even under a fake name where everyone can read.
If anyone thinks they can give me real advice on who to talk too if I give more information please FM me and I will give you more information to help guide your answer to me.
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| Posted 11/20/18 5:03 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by stressmoney
I know you should not withdraw from its never a good idea etc etc.
I just need to know who I should be contacting about letting me know what will happen, what that means come tax season, if this is the best option for us right now.
Do I contact a financial adviser for this? Is this the best type of person to look at everything and say yes you are better off doing this rather than say doing XXX?
I need someone to look at everything and tell me what the realistic best option is and what the result will be if I do it.
Most company 401ks allow for loans. You should contact your HR department to inquire about such.
If you are looking to just withdrawal from your 401k and you are under 59 1/2, you will pay a 10% penalty and your AGI income tax rate which would probably put in in the tax range of 35-50% of your withdrawal would be due in taxes.
Yes, a financial advisor would help you with figuring out where to take money from and what the tax liabilities may be.
My first question would be what would you be using the 401k withdrawal for? Daily living expenses? Consumer debt? College? Medical expenses? Each of these are a different approach.
Message edited 11/20/2018 5:41:21 PM.
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| Posted 11/20/18 5:37 PM |
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stressmoney
LIF Zygote
Member since 10/16 11 total posts
Name:
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by CookiePuss
Posted by stressmoney
I know you should not withdraw from its never a good idea etc etc.
I just need to know who I should be contacting about letting me know what will happen, what that means come tax season, if this is the best option for us right now.
Do I contact a financial adviser for this? Is this the best type of person to look at everything and say yes you are better off doing this rather than say doing XXX?
I need someone to look at everything and tell me what the realistic best option is and what the result will be if I do it.
Most company 401ks allow for loans. You should contact your HR department to inquire about such.
If you are looking to just withdrawal from your 401k and you are under 59 1/2, you will pay a 10% penalty and your AGI income tax rate which would probably put in in the tax range of 35-50% of your withdrawal would be due in taxes.
Yes, a financial advisor would help you with figuring out where to take money from and what the tax liabilities may be.
My first question would be what would you be using the 401k withdrawal for? Daily living expenses? Consumer debt? College? Medical expenses? Each of these are a different approach.
thank you FM sent
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| Posted 11/20/18 6:03 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by MarathonKnitter
are you still employed at the company that you have the account with?
if the answer is yes, withdrawing it isn't an option.
This is NOT true. In my company we are allowed to withdraw in cases of hardship such as pending foreclosure, funeral expenses, unexpected medical costs and college tuition. You have to have documentation stating that you have this need, the company reviews and then allows you to withdraw.
OP: I would do a serious look at your situation. Is it temporary? Do you think you can get back on track in a few months or a year? if so then avoid bankruptcy and do what you have to do. Can you try getting on a hardship program with your creditors. Call them and explain your situation. Many creditors are willing to work with you by lowering your payments and interest..it may effect your credit though but if you're in deep money trouble you may not care right now.
The last option would be bankruptcy...although this should be the last option if you cannot see a way out of your situation in the short-term it's not the worst thing in the world and you will bounce back.
Good luck in whatever you choose!!
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| Posted 11/20/18 7:08 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: who talk to about 401K withdrawal, or to give me the best financial and realistic advice
Posted by stressmoney
I do have an accountant.
I also need this person take in all aspects on what is going on in my life financially and currently what I am doing and tell me if pulling from my 401K is better than say just filing for chapter 7 bankruptcy versus a different option.
These are just examples I am giving to get an idea on the kind of advice I am really looking for.
Is an accountant still the best person to contact?
Start with your accountant. If you need a financial adviser, s/he can recommend one.
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| Posted 11/21/18 9:44 AM |
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