8 Answers

i am retired so you do not have to pay it back, only if your working and borrow against it! I just feel desparate to use the money i worked hard for to save and am really in need of it to be happy & pay off all my debts. THANKS....

I will call my old job place and ask them more questions.

If you feel you need it now, get it out.After all you can't take it with you when you die.

If you really need the money now, I don't know that there would be any alternative.

Depends on why you need it.  Federal laws restrict why and how you can borrow against your 401and you have to pay it back if I'm not mistaken!  Do more research........

Be careful about pulling money out of savings without first finding out about taxes that will need to be paid on it, how it will affect future growth of your account, how much you need for future living expenses, etc. (If you live to age 92, do you have enough?)  I know that it is YOUR money but you need to weigh this decision carefully, as it may have consequences about which you are unaware.  Do you have a financial advisor?  If not, carefully choose one, and start asking these serious questions.  As a starting place, check out www.SuzeOrmancom 

Sure if  you need it, despite the tax, it, still a source of money.

You are retired... that is why you contributed to your 401k. Use it when you need it.

Money you withdraw will be classed as income and you will pay tax on it. It sounds to me your tax rate would most likely be very low (judging by the fact you state you are in need of it now). The 20% is only if you have other income that would put you into that tax bracket.