Archived Hardship withdrawals from 401k

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Why not borrow from it? There's interest but you won't be taxed for an early withdrawal, or so I was told.
 
Go under targetpayandbeneifits, hit 401k option. It will have directions to follow on how take it out.
Note: You will be charged $20 per NonHardship Withdrawal. Your after-tax contributions will be suspended for six months. You will need to re-elect your after-tax contribution rate after your suspension has ended. You are still allowed to contribute on a before-tax basis as long as you are not also currently suspended for taking a hardship withdrawal from the plan. You may elect or change your before-tax contribution rate at any time.
 
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Shirohime said:
Why not borrow from it? There's interest but you won't be taxed for an early withdrawal, or so I was told.
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Over the years I have had to borrow from my 401k a few times. There's a fee upfront, but it's not much, the interest isn't high, repayment is automatic from your paycheck. I actually did this to do some house upgrades as the interest is less than a credit card and it would not affect my credit rating, etc. like a home equity loan would. There are no penalties and it is not taxable.
 
Rarejem said:
Over the years I have had to borrow from my 401k a few times. There's a fee upfront, but it's not much, the interest isn't high, repayment is automatic from your paycheck. I actually did this to do some house upgrades as the interest is less than a credit card and it would not affect my credit rating, etc. like a home equity loan would. There are no penalties and it is not taxable.
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I would but already have a loan out and my car is in danger of being repossessed
 
how much is needed? maybe you can cash out sick or vacation hours...might be the better choice if possible
 
If you take a hardship withdraw you will get taxed heavily. Take out a 401k loan, its the best option. Cost 75$ they deduct the payment from your check. It goes back into your 401k.. No tax you payback yourself..
 
All good advice,but if you already have a loan it doesn't help.Target does have a hardship fund that help tms in distress,ask your hr about it,it may help you get through this,withdrawing from the 401k as said above is very heavily taxed,full rate +10%
 
Rarejem said:
Over the years I have had to borrow from my 401k a few times. There's a fee upfront, but it's not much, the interest isn't high, repayment is automatic from your paycheck. I actually did this to do some house upgrades as the interest is less than a credit card and it would not affect my credit rating, etc. like a home equity loan would. There are no penalties and it is not taxable.
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Repayment comes from your check? Say I took 1k out, would I expect 1k to be taken from my check in a lump sum? I had been thinking about doing this to cover some emergency medical bills, but still need my paycheck to make rent and fit my budget.
 
tgtfla said:
All good advice,but if you already have a loan it doesn't help.Target does have a hardship fund that help tms in distress,ask your hr about it,it may help you get through this,withdrawing from the 401k as said above is very heavily taxed,full rate +10%
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How much would they give me?
 
that is a great pity,I know a lot of people that it helped over the short term,but it was no solution for short hours or low pay or even a lack of ability or desire to make progress.
 
quillshot said:
Repayment comes from your check? Say I took 1k out, would I expect 1k to be taken from my check in a lump sum? I had been thinking about doing this to cover some emergency medical bills, but still need my paycheck to make rent and fit my budget.
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No, you are basically borrowing from yourself. You choose how long you want to take to pay it back (I think it's either 3 years or 5 years although you can choose to pay it back all at once). They'll take it out in increments for that amount of time. You can't pay back chunks at a time... it's either the installments they've set up or one lump sum. (For example: you get a large tax return and want to pay off a large part of the loan... can't do it.)
 
Rarejem said:
No, you are basically borrowing from yourself. You choose how long you want to take to pay it back (I think it's either 3 years or 5 years although you can choose to pay it back all at once). They'll take it out in increments for that amount of time. You can't pay back chunks at a time... it's either the installments they've set up or one lump sum. (For example: you get a large tax return and want to pay off a large part of the loan... can't do it.)
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You can also elect pay off the remaining amount at any time.

I believe one of the only stipulations for a 401k loan is that you are restricted to taking out only a % of your total 401k, something like 50%.

The repayment period is 12-36 months.
 
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tgtfla said:
not sure if it's still in existance,but I know tms who got up to $500
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I wanted to bring this up but I'm not sure if you would qualify with money in your 401k...

Target offers a good will financial hardship program where they can cut you a check of up to $500 I think. One of the HR people here may know a little bit more about it.
 
glo said:
I wanted to bring this up but I'm not sure if you would qualify with money in your 401k...

Target offers a good will financial hardship program where they can cut you a check of up to $500 I think. One of the HR people here may know a little bit more about it.
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That hardship fund was stopped by spot, last year.
 
tgtfla said:
All good advice,but if you already have a loan it doesn't help.Target does have a hardship fund that help tms in distress,ask your hr about it,it may help you get through this,withdrawing from the 401k as said above is very heavily taxed,full rate +10%
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That fund is gone unfortunately
 
I borrowed $1000 from my 401K. I am paying it off $25 per paycheck. Depending on how much you need the loan might be a better option. Only 3 days passed from the day I requested the loan until the day I saw the deposit in my account.
Whatever you might be going through I hope you get out of it with your head high.
Good luck :)
 
Apapaia said:
I borrowed $1000 from my 401K. I am paying it off $25 per paycheck. Depending on how much you need the loan might be a better option. Only 3 days passed from the day I requested the loan until the day I saw the deposit in my account.
Whatever you might be going through I hope you get out of it with your head high.
Good luck :)
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I am not doing a loan I am doing a hardship withdrawal
 
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