Comments on: 10 Awful 401(k) No-No’s You Should Avoid

By: Jeff Rose

Jeff Rose — Wed, 31 Oct 2018 23:36:17 +0000

In reply to Geneva Goodman. Hi Geneva - You can take the money but you'll have to pay ordinary income tax on the withdrawal, plus a 10% penalty if it's a 401k. The homebuyer exemption only applies to IRAs.

By: Geneva Goodman

Geneva Goodman — Wed, 31 Oct 2018 05:35:27 +0000

I need to know if it has been 8/9 years since I’ve work , can I draw from it for housing ? I’ve been without a resresidence. Almost the entire time with zero income at this time. Please help me.
Sincerely Geneva Goodman

By: Jeff Rose

Jeff Rose — Mon, 19 Oct 2015 18:54:24 +0000

In reply to Chris Peach. @ Chris I typically tell people to start investing even if they have debt. For some people that have excessive debt, contributing the max to get the match might be too much. In those cases, I advise they invest something; 1%, 2%, etc. The logic is they'll get some experience/exposure to investing and start to learn how it works. By the time they pay off a good chunk of their debt they'll be able to invest more money with more knowledge and understanding.

By: Chris Peach

Chris Peach — Mon, 19 Oct 2015 00:26:59 +0000

Hi Jeff,

What’s your opinion on investing in your 401(k) when you’re facing quite a bit of debt? Do you prefer your clients go down to the match, hold off all together, or take it case by case?

By: Natalie @ Financegirl

Natalie @ Financegirl — Mon, 20 Jul 2015 12:03:58 +0000

As an attorney, it’s very uncommon to ever get an employer match. I never have! That said, I continue to use a 401k (even while I’m paying down my student loan debt)!

By: Isaiah

Isaiah — Thu, 16 Jul 2015 00:06:27 +0000

I do think borrowing from your 401K can be advantageous in certain situations. I had accumulated some credit card debt. I decided to borrow and pay off that high interest debt. I repaid myself back in six months. While it’s true that your money is not earning money when you remove it, the 401k earns money in the long run so paying it back in a short time frame is key.

By: Thias @It Pays Dividends

Thias @It Pays Dividends — Wed, 15 Jul 2015 12:34:25 +0000

i work directly with our 401k program with my company and it is amazing the amount of people who don’t take full advantage. We offer the opportunity to meet with our plan advisors to better understand the offerings and very few take the opportunity. Some don’t even contribute to the match, which only requires 5%.

We just continue to work on education to try and make sure everyone knows how important contributing is to their future.