401K - cashing out, penalties?
09-27-2012, 02:50 AM
More like we're dealing with the government who just loves to take out hard earned money, especially when we really need that money and, choosing not to pay for the results of his "erroneous" ways. I'd do it, one time if it meant a little peace of mind and surviving a bit above subsistence level. And that's all it would be, decent meals and a way to get around to tend to what you need to do, be that the lawyer, shopping, etc...
If I thought you'd qualify for food stamps and such, I'd say go for it, get back a little of the taxes you've paid in, but I doubt you qualify.
If I had an extra oh, 8-10 grand I'd get it to you but, I'm waiting for my disability to kick in too, and living off my savings right now. *kicks own tail for giving up that semi instead of selling it*
A loan might be an option, but, then that's yet another debt, even if it is to yourself. Look at the difference between that credit card interest rate and the next tax bracket down. That might be enough to make it worth just doing hardship off the 401k now, then the rest in January.
Maybe a friend can give you a ride, or you can borrow a seldom used car or something. I know, there is no good option here. Never is when you involve exes, the IRS and having to live yourself it doesn't seem.
What's more important to your well being and peace of mind, not paying the penalties (or using the credit card) or getting him out of there? If the only option are to pay the penalties and taxes now, and paying it next year, in a lower tax bracket or, credit card interest for the next three months, which would cost you less?
Yes, yet another no win, salvage what you can situation.
I can't set your priorities for you, but you can decide if getting him out, swallowing a bit of morals for one thing, scraping by for three months, or just taking the hardship honestly, clearing bills and paying the penalty for the rest is the least of the evils for you.
I know I'd want him out, even if that cost me financially, as long as I ended up with enough to get by on until I got my disability (including a car), peace of mind and a calm home would be worth it for me. I gave up a 75,000.00 semi to get it a few months ago but, that's me; I value my peaceful home above any financial gain. I'll eat the 75G to be rid of the fights and negativity.
If I thought you'd qualify for food stamps and such, I'd say go for it, get back a little of the taxes you've paid in, but I doubt you qualify.
If I had an extra oh, 8-10 grand I'd get it to you but, I'm waiting for my disability to kick in too, and living off my savings right now. *kicks own tail for giving up that semi instead of selling it*
A loan might be an option, but, then that's yet another debt, even if it is to yourself. Look at the difference between that credit card interest rate and the next tax bracket down. That might be enough to make it worth just doing hardship off the 401k now, then the rest in January.
Maybe a friend can give you a ride, or you can borrow a seldom used car or something. I know, there is no good option here. Never is when you involve exes, the IRS and having to live yourself it doesn't seem.
What's more important to your well being and peace of mind, not paying the penalties (or using the credit card) or getting him out of there? If the only option are to pay the penalties and taxes now, and paying it next year, in a lower tax bracket or, credit card interest for the next three months, which would cost you less?
Yes, yet another no win, salvage what you can situation.
I can't set your priorities for you, but you can decide if getting him out, swallowing a bit of morals for one thing, scraping by for three months, or just taking the hardship honestly, clearing bills and paying the penalty for the rest is the least of the evils for you.
I know I'd want him out, even if that cost me financially, as long as I ended up with enough to get by on until I got my disability (including a car), peace of mind and a calm home would be worth it for me. I gave up a 75,000.00 semi to get it a few months ago but, that's me; I value my peaceful home above any financial gain. I'll eat the 75G to be rid of the fights and negativity.
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