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I'm 22 and have about $12k in a 401k with my job going to school part time.
I might get canned here soon though, but if and when I planned on finishing school. Is it a good idea to cash out? Everywhere I read cashing out a 401k is like rape to some people so I'm unsure if i'm missing something.
I know that you get a 10% penalty and charged income tax which I'm personally fine with. I figure that finishing school would give me more benefit both short and long term. plz gibs advice.
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Start looking for another job first maybe? That's your best finacial decision. Then if that doesnt work There's some rules where you can borrow against your 401k for education costs so you don't get crushed on taxes but you do have to pay the loan back (not sure how it works if you get fired)
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>>1092370
I've started looking and asking around. I have a few places that I want to try out but haven't yet applied because nothing is set in stone and because I don't want to put another pause in school when I'm so close to finishing.
I'm always waiting in case work does kick up again so that I don't end up paying more taxes on my withdrawal.
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>>1092246
Roll it over to an IRA
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Typical biz post: asks if he should cash out 401k but doesn't explain why he wants/needs to do so in the first place.
Some people are too retarded for money.
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>>1092416
this, pretty sure IRA withdrawals for secondary education expense are exempt from that penalty
401k will still get the penalty so roll first then withdraw. dont pay a $1.2k penalty.
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