C
cchabert
Guest
For short.....Start saving!ingegarcia said:That is correct you need to check what is the vested balance of your 401k, most of the companies set 5 years to have access to 100% of your balance. But even if you are 100% vested or you have access to 100% of your money... you are still subject to what "V" described in the previous comments... It is actually 10% penalty for early withdrawal minus 20% for taxes, so it would come down to around 30%.. Additionally if you want to withdraw 100% of that money you need to resign/get fired/layoff.....
So if you have 10 dollars in your account you might end up with 6-7 dollars or even less if you are not 100% vested.....
As V said if you are going to present your 401k as a proof of funds you should call/contact your mutual funds company to find out how much you are eligible for at the moment of your resignation.
I hope this helps....
BTW I am not an expert either...
V said:I would be somewhat careful with 401K because it is taxable when you withdraw the funds. If your 401K statement shows you have a certain amount, say $11,000, when you decide to with draw the funds some of it may be subject to taxation and some may be subject to a 10% penalty for early withdrawal. Therefore, the amount that shows in your 401K statement may not entirely be unencumbered and transferable. Therefore, I suggest that you use your 401K as a proof of fund only if you have an amount that is reasonably higher than your minimum fund requirement to account for taxation and penalty.
I am not an expert, and this is just my opinion.
Good luck
V