http://www.moneyunder30.com/can-i-cash-out-my-401k-anytime-and-take-the-cash Personal Finance for the Young and Ambitious Mon, 15 Mar 2010 01:36:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.moneyunder30.com/can-i-cash-out-my-401k-anytime-and-take-the-cash/comment-page-1#comment-1817 Peter Schildhause Thu, 26 Mar 2009 10:34:43 +0000 http://www.moneyunder30.com/?p=721#comment-1817 Assume a buck in the 401k will double in 5 years? Do I take it out now or wait. I take it now and pay 30%fed tax on ordinary income and 10% state so I hav 60 cents that doubles to $1.20 On that I pay 15% long term gains abd 10% state so I'm left with 90 cents. Assumption two-let it ride in the 401k. It doubles from a buck to 2 bucks-I take it out and pay 30% fed and 10% state and end up with $1.20- loooks like leaving it in is the right way to go. Well? Assume a buck in the 401k will double in 5 years? Do I take it out now or wait. I take it now and pay 30%fed tax on ordinary income and 10% state so I hav 60 cents that doubles to $1.20 On that I pay 15% long term gains abd 10% state so I’m left with 90 cents. Assumption two-let it ride in the 401k. It doubles from a buck to 2 bucks-I take it out and pay 30% fed and 10% state and end up with $1.20- loooks like leaving it in is the right way to go. Well?

]]> http://www.moneyunder30.com/can-i-cash-out-my-401k-anytime-and-take-the-cash/comment-page-1#comment-1816 Peter Schildhause Thu, 26 Mar 2009 10:25:35 +0000 http://www.moneyunder30.com/?p=721#comment-1816 I am 59 1/2 and surely I can take the money= how much at a time? could i take it all (rather devalued now) and invest it personally and then pay long term capital gains on all future gains. It it stays in the 401k and recovers, the the gains will be taxed as ordinary income as i take it out. I haven't done the arrithmetic, but it seems that ignoring problems like minimum tax calculations. taking it out an paying tax now will be about equal to letting it ride=unless I throw i state tax which doesn't recognize long term gains. Tough Question I am 59 1/2 and surely I can take the money= how much at a time? could i take it all (rather devalued now) and invest it personally and then pay long term capital gains on all future gains. It it stays in the 401k and recovers, the the gains will be taxed as ordinary income as i take it out. I haven’t done the arrithmetic, but it seems that ignoring problems like minimum tax calculations. taking it out an paying tax now will be about equal to letting it ride=unless I throw i state tax which doesn’t recognize long term gains. Tough Question

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