401K Early Withdrawal

Discussion in 'Sanofi' started by Anonymous, May 11, 2012 at 10:03 AM.

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  1. Anonymous

    Anonymous Guest

    I wanted to see if anyone at Sanofi has done this. I have found myself in some moderate financial trouble as my spouse has lost their job and we have racked up some credit card debt. I called T. Rowe Price about having an early withdrawal of part of my 401-k. They told me that after taking 2 separate loans I could apply for a hardship withdrawal. However, the approved reasons for taking the hardship withdrawal do not include "credit card debt". They are tuition, funeral, eviction, etc.

    Can anyone weigh in on what I can do to get some cash out of this account?
     

  2. Anonymous

    Anonymous Guest

    don't do it! If you must have the money, take a 401k loan. that loan because taxable income if you quit or get fired. You are in dangerous territory when you start doing this stuff.
     
  3. Anonymous

    Anonymous Guest

    Google "401k Early Withdrawal" or "401k Withdrawl" there are several good articles you'll find written by financial experts on this subject. It is really something to avoid if at all possible and there are probably other things you can do before reaching that point. Really tough to provide advice without knowing your specific circumstances. There are so many angles to take when it comes to solving financial issues. Best wishes to you.

    I'll pray for you and please pray for help on finding the right answers.
     
  4. Anonymous

    Anonymous Guest

    Do the loan. You can get the money deposited directly into your account in under 5 days. You can do mayments and at low interest rate. If you do early withdrawel hardship you'll get crushed on taxes. #utomatic close to 30 percent on penalty to do this and then your taxed as income on this later. Do the loan as its easy and not very painful.
     
  5. Anonymous

    Anonymous Guest

    Thanks for the advice. The question still remains, is it even possible to get the withdrawal with Sanofi? After I pay taxes and penalties, what percentage would I be expected to get? 60%? 65%??? Believe me, I don't want to do this but I want to see what all my options are.

    Thanks for anyone that can help.
     
  6. Anonymous

    Anonymous Guest

    Your question was: how can I get money out of the plan. The answer is: if you MUST, borrow from the plan, do not take a withdrawal even if you can "lie" yourself around the restrictions. I know that you do not want advice, but learn to live on your salary (not your income) alone and when your spouse does get back in the workforce SAVE her income for long term FIRST (no one is going to let you borrow for your own retirement, and for a good sized emergency fund SECOND (six months minimum income needs) and THEN think about spending any of her income. Paying off the debt you incur between now and when she does find a job will be first, of course.
     
  7. Anonymous

    Anonymous Guest

    TROWE Price will automatically withhold 10% for the tax penalty. Then you will likely have to pony up another 25% at the end of the year. Try to avoid a withdrawal if at all possible. You are paying 35% on the withdrawal and likely the credit card interest rate is not that high. You could do the loan without any penalties and you will be paying yourself back the interest. Do what you can. Refinance the house on a lower rate/longer term, trim the fat where possible. We had to do this. It sucks and it is an adjustment but it will help you be better prepared and learn to live on less once you do get back on your feet.

    I will say a prayer for you. I have been there. It isn't easy. But remember, it is only temporary. Hang in there.
     
  8. Anonymous

    Anonymous Guest

    It amazes me how people run up debt on a credit card. Can you at least take a loan with a lower interest rate?
     
  9. Anonymous

    Anonymous Guest

    Agree with other posts - avoid withdrawal from 401k unless you're in a situation where you're faced with filing bankruptcy. You described moderate financial trouble and credit card debt, so on the surface it sounds like there are probably several options before withdrawal from 401k or bankruptcy. Just ideas and not sure which of these would help not knowing everything about your situation:

    Talk with the credit card companies about altering payments - work out terms with them. They would rather you pay than you default on the debt.

    Evaluate everything when it comes to what you're spending - TV/Cable, Internet, other services, etc. Either eliminate or reduce any service to the bare minimum to save money. It is understandable that in today's world we need internet to search for jobs, etc.

    Sell things. Anything that's not something personal that you can't replace. Anything can be purchased again later when your financial picture is better/credit card balances paid. Nothing material is worth hanging onto. So many things are cheap that by the time you go to get them again the price will be lower. Can you sell one car with a high payment and get spouse into something less expensive? (only throwing that out there if the option is there).

    Refinance the mortgage - new Freddie Mac/Fannie Mae program refinance without appraisal but you have to already be in an FHA loan. CashCall Mortgage has excellent rates and service. Quicken Loans is also very good.

    Can your spouse find some part-time work or maybe even mow lawns or do anything to earn cash? Not ideal but there are a lot of odd jobs we can do to earn cash.

    Try your best - the harder thing to do is solve the problem with scaling back, selling things and taking part-time jobs. The easier thing to do is usually worse in the long run (like taking money from 401k or bankruptcy).

    Best wishes to you...
     
  10. anonymous

    anonymous Guest

    goodness.. just answer their question
     
  11. anonymous

    anonymous Guest

    Do not use your 401k to pay off unsecured debt. I don't agree with people saying mean things but I would strongly encourage you to take a personal finance course such as Dave Ramsey etc. Burning your 401k to pay for things is not the answer and whatever problem you think you are solving will still be there long after you have emptied every account you have. The problem barring some medical bills or something is that you are living too large. That makes exactly no one happy. Good luck. And remember you actually will be old some day and sooner than you can imagine. You will need that money for when you can no longer work.
     
  12. anonymous

    anonymous Guest

    You can borrow against it at an interest rate that is similar to a bank. What is good about that is that you are paying yourself interest. That's a smart way to borrow. You can't have access to your 401k until you are fully tenured and you have left Sanofi. Good luck to you!
     
  13. anonymous

    anonymous Guest

    this advice is not 100 percent accurate...you can access your 401K when you turn 55 without penalty providing you have not been severed for any reason from the company. Barring that age 59and half.
    The loan is not a good idea in this environment. If you take the loan and terms of 5 or 7 years and you are laid off prior to paying it off then you owe the full balance immediately or you will be taxed and penalized as if it were a withdraw. If you are confident you will be with Sanofi for the entire term of the loan go for it. But I wouldn't be so sure. Negotiate your credit card balances and get a loan from a family member if possible. Agree to formal terms including interest and signed agreement.
     
  14. anonymous

    anonymous Guest

    Go for the 401 k loan. I have taken out 6 loans over the years. If you are ever layed off, the IRS will tax you for the taxes and early withdrawal penalties but they work with you. Just ask for a payment plan just like a bank loan. Just don't f' them otherwise they will come for you. They are good people not matter what you hear. The other advice you hear is from the 401 k douche bags who earn millions off us who say "don't do it". Everyone has their reasons for tapping this resource, do what is right for you. We are not all millionaires like our leaders within our company or our country. God Bless All.
     
  15. anonymous

    anonymous Guest

    Anyone that tells you that is okay to borrow from your 401k is a financial moron.
     
  16. David Mirza

    David Mirza Guest

    A bunch of broke a$$ losers in this thread. Moderators deleting the truth does not change the truth.
     
  17. anonymous

    anonymous Guest

    Awwwww is the unemployed troll all mad ? boo hoo man child !
     
  18. anonymous

    anonymous Guest

    Do not withdraw from 401k as the penalty and taxes are too steep - you'll need those funds in retirement. Avoid borrowing because when you get laid off you will be required to payoff the loan in full -OR- Sanofi/TRowe has an option to make monthly payments.

    Payoff credit cards - start one at a time with th lowest balance first to create momentum.

    Your wife should find work even if minimum wage. Start a business house cleaning, childcare, etc.

    You can get extra work part-time even one weekend day a week can help pay down debt.

    No more eating out - NONE.

    Cutoff TV service.

    Any expense possible - cut or reduce.

    Sell a car and get a cheaper one.

    You can do it - make a plan and stick to it. In a year or two you'll be fine.
     
  19. anonymous

    anonymous Guest

    Spoken like a unskilled non-professional green collar laborer.
    Make wife work for minimum wage ? Are you fucking bat shit crazy ?
    Nothing about looking for work ? BUSTED AGAIN
     
  20. anonymous

    anonymous Guest

    Coming from someone a wannabe Sales rep catering lunches and driving up the cost of healthcare with over-priced drugs, I'll take your post as a compliment.