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Congrats on committing. Do be aware you may owe regular income tax on the distribution as well as the 10% penalty. For others looking to tap retirement capita
by jriley 14y ago
Congrats on committing.
Do be aware you may owe regular income tax on the distribution as well as the 10% penalty.
For others looking to tap retirement capital you might research self-directed IRAs and 401ks. I don't have one but considered it for a real estate deal recently.
Quick Tax Reference:
http://turbotax.intuit.com/support/iq/Less-Common-Income/Withdrawing-Money-From-Your-401-k--Plan-As-a-Hardship-Distribution/GEN12549.html http://turbotax.intuit.com/support/iq/Less-Common-Income/Wit...
- TomatoTomato 14y agoNot necessarily, if this is a Roth-401(k), then there are certainly penalty free distribution options for your personal contributions. If not, there are legal, but backdoor, ways of "investing" your traditional-401(k) into the newly found startup corporation (a family member did this recently). I think you can also take loans against a 401(k). Either way, please consult a CPA before taking any action.