Will the company you work for let you close your 401k account?

I've been seeing some folks on this site, others and in person stating it's a good idea to close a 401k account due to the possible pending doom in the stock market (NYSE).

The company I work for will not let me close out my 401k as long as I'm working for them. To me that seems strange, and I'm thinking there will be a conversation soon between myself and HR about this topic to obtain additional details as to if this is strickly a company policy or not.

So as my thread title states, does your company give you the option to completely close out your 401k any time you want?

*Mods please feel free to move this thread if it's in the wrong topic, thank you.*

TWBU

What are you planning on doing with the money from the 401k if you take it out? As Neo said, DO NOT take financial advice (or medical) from ATS. There are certainly some very bright members, but you can't trust what people say. Get ideas sure, then ask someone who actually knows (and is accountable) for more information.

I have mine with a local credit union. I can take the money out whenever I want.

reply to post by Domo1


I agree with you 100%. Unfortunatly Neo removed his post before I could read it?

To answer your question though, I would buy as much gold as I could.

reply to post by TheyWontBelieveU


When TSHTF do you really think anyone will want your shiny rocks? Invest in FOOD!

reply to post by Evolutionsend


This seems much safer than my 80% stocked based 401k plan I currently have established.

Thank you for sharing!

Originally posted by Evolutionsend
reply to post by TheyWontBelieveU

 

When TSHTF do you really think anyone will want your shiny rocks? Invest in FOOD!

Even better, I'll grow my own!

My ex wife and her elitist North Dallas elitist family of swine has cornered the market on gold and oil and priced it too high for everyone except other elitist swine. Good Luck.

reply to post by TheyWontBelieveU


First... never take advice from the internets!

As an addition my advice is in no way actual advice and should not be construed as advice. I am in no way telling you what to do, when to do it or how to do it. I am not suggesting anything nor am I responsible for any financial dysfunction you find your self in. In fact, don't pay attention to anything I say. I am not a financial adviser.

I've been seeing some folks on this site, others and in person stating it's a good idea to close a 401k account due to the possible pending doom in the stock market (NYSE).

401(k) plans have risk level investment tiers. This means that you should be able to move funds out of stocks and into bond/treasury investments. You shouldn't have to "close" your account.

The company I work for will not let me close out my 401k as long as I'm working for them.

Right. That's true. You can limit your contributions, but as long as your working for a company that offers the service, you'll always have something going into it, even if it's a few dollars. You CAN withdraw from it, that's different. You can reallocate the funds. You can stop contributions. But you cannot "close" the account.

strickly a company policy or not.

No, it's not just your company. 401(k) is a legal code for an employer/employee contribution retirement plan that is tax-deferred. When you leave the company you can "roll-over" the account into a new 401(k) or other qualified plans (such as in many cases IRA accounts)

So as my thread title states, does your company give you the option to completely close out your 401k any time you want?

No. You can only stop contributions.

Also you should know that the money is tax-deferred. This means if you withdraw the money before you retire the entire balance will be taxed at a very, very high rate (usually between 40-50%). Also many companies have "vested" time restraints, meaning if money is withdrawn before a set date of employment (usually around 5 years) the company contributions will be withdrawn back to the company and you will then be taxed. You're probably more likely to loose more from the taxation than you would from losses on stocks.

Contact your HR office to discuss it! And don't take advice from the internets!

My husband's company only allows withdraws if you have proof of hardship. This is frustrating as we feel it's his hard earned money. I have felt deep in my gut for some time that the whole push to put money in 401K was originally designed as just another way to get our money from us when the time is right. I wouldn't be surprised if the government didn't abscond with that money at some point in the not to distant future.

Originally posted by TheyWontBelieveU
I've been seeing some folks on this site, others and in person stating it's a good idea to close a 401k account due to the possible pending doom in the stock market (NYSE).

The company I work for will not let me close out my 401k as long as I'm working for them. To me that seems strange, and I'm thinking there will be a conversation soon between myself and HR about this topic to obtain additional details as to if this is strickly a company policy or not.

So as my thread title states, does your company give you the option to completely close out your 401k any time you want?

*Mods please feel free to move this thread if it's in the wrong topic, thank you.*

TWBU

You have ever right to pull your 401 from your account, it comes with a penalty of 1/3rd to taxes, but well worth it. But will they let you pull it? i think that answe ris a big NO. I heard about the 401 problems about a year ago and finally talked my husband into pulling it out, we succeeded but this was just before the stock market started falling again. See there are millions and millions of senior who have paid into their 401`s for the past 40-50 years and are know old enough to collect, do you really think there is that much money in the market? if there is and everyone starts pulling out that would make a definate crash, ya I hope you get it out but i seriously doubt you will get it, i think you waited to long. Good luck to ya. If you can pull your bank savings and checking start clearing the accounts that you can get to, we have been saving cash and metals for about a year know, we put only enough in the bank to cover the checks we write for the bills, not a cent more. good luck and peace

Well, when I worked for taco bell they really tried to push a 401k on me. I didn't expect to be there till I retire, though I bet they hoped I would. I opted out, I don't much about 401ks or anything. Just telling you my limited experience with them.

Take any chart and draw a 30 year line. As long as there is inflation, any company that isnt run in the ground will grow in value, because a company is essentially a hard asset, with the exception of banks maybe.

Originally posted by Evolutionsend
I have mine with a local credit union. I can take the money out whenever I want.

That's not a 401k, is it?. Sounds more like an IRA. IRAs are self-directed.

Originally posted by Evolutionsend
reply to post by TheyWontBelieveU

 

When TSHTF do you really think anyone will want your shiny rocks? Invest in FOOD!

Foods a good choice. Make it the 4 staples. Rice, flour, sugar, rolled oats.

reply to post by TheyWontBelieveU


His post basically said don't take advice off anonymous forums.

I really wouldn't invest in gold if I were you.

I also looked into cashing out my 401k and wasn't permitted to do so. I can take loans against it for 50% of the value, but that's it.

I have to wait until I'm 59 and a half or have some kind of hardship to withdraw it all, But if I ever quit I'll just cash it out and pay the penalties, I'd rather control my own cash than invest it in anything to do with the market.

Originally posted by korath
I have to wait until I'm 59 and a half or have some kind of hardship to withdraw it all, But if I ever quit I'll just cash it out and pay the penalties, I'd rather control my own cash than invest it in anything to do with the market.

You don't understand. If you quit your job you can have your 401k rolled over into an IRA. No penalties and no taxes. IRAs are self-directed and you can invest it in whatever you wish including the precious metals sector. Or you can let it sit in cash.