How do i withdraw money from my 403(b)?

Question

i'm looking for some information (in layman's terms) about how i should go about converting this particular retirement plan into cash. specifically, can i transfer the money directly into my savings or checking accounts? if so, how do i do this? also, because i'm not 59 and a half, what should i expect to lose by taking the money out early?

thanks everyone.

Answer 1

Talk to your human resources manager. You will be taxed and you have to pay the money back if its a loan. I wouldn't do it unless you have no other choices. Better to take out a loan and then pay the money back.  

Answer 2

Generally, you can only cash out a retirement sponsored plan when you no longer work there.

If you cash it out and are under 59 1/2 years old, you will pay ordinary income taxes (10-35%), a 10% federal penalty and state income taxes if applicable.

Many people lose upwards of 40% of their retirement plan to taxes and penalties if they cash it out early.