Personal Development for Smart People Forums - View Single Post - 401k money question...to take it out or not to take it out

SomeRandomGuy · 10-23-2009, 10:22 AM

You could easily grow that $4500 into $100,000 by the time you're 62. Also, my understanding is that cashing out a 401(k) early costs approximately 40% after penalties and taxes, which would leave you only $2700. It seems rather depressing to think of giving up $100,000 for a $2700 short term gain. On the other hand, its easy to see how the money can help you now. Good luck with which ever route you choose.

10-23-2009, 10:22 AM	#2 (permalink)
SomeRandomGuy Senior Member Join Date: Feb 2008 Location: KY Posts: 824	You could easily grow that $4500 into $100,000 by the time you're 62. Also, my understanding is that cashing out a 401(k) early costs approximately 40% after penalties and taxes, which would leave you only $2700. It seems rather depressing to think of giving up $100,000 for a $2700 short term gain. On the other hand, its easy to see how the money can help you now. Good luck with which ever route you choose.