NFT: Pull Money Out Of 457/401K?

[The Rick]

Here's a quick question. I think I know the answer, but I'll ask anyway.

I have a debt I want to pay off quickly. I don't feel like getting roughed up by a couple of thugs looking for their money.

Okay, I'm just kidding about the thugs part. But honestly, I just want to be rid of some debt and I don't enough spare cash on hand to pay it off right now.

I do have more than enough to pay off the debt in a 457. Is there any way to pull some money out of a 457?

So far, the only thing I've seen about pulling money out of a 457 is that it can be done when you quit your job or in the event of an unforseen emergency. I don't feel like quitting my job and don't have any emergencies right now.

I know there would be taxes that would have to be paid and possibly a penalty, but it would still be worth it to me in the long run.

[Eleazar]

Originally Posted by Amnorix

My MORON brother-in-law withdrew from his 401(k) to buy my sister-in-law her engagement ring. Didn't even know about the horrendous consequences.

Yes. Marriage.

[tomahawk kid]

Originally Posted by Amnorix

My understanding is that it would average something like 60%.

Of course, you're also losing tax free investment growth on that money going forward.

Basically, in terms of retirement / long range financial planning, it's about the worst thing possible. Unless you're got a truly dire emergency, don't even think about it.

My MORON brother-in-law withdrew from his 401(k) to buy my sister-in-law her engagement ring. Didn't even know about the horrendous consequences. Idiot...

Do they take out the taxes immediatly, or do they come callin around April 15 like other capital gains tax?

[eazyb81]

There are these guys called "financial advisors", they know this stuff pretty well and could easily answer any of these questions.

(/shameless plug)