My husband and I would like to purchase some land, we need to be able to put down 20%. ?

Question

We was thinking of cashing out our 401k to do this we currently have $13,500 in it. My question is how much will we get if we cash it out? We need about $10,000 to put down.

Answer 1

when cashing out you in-cure a 10% penalty plus you have to now pay income taxes on this money so all in all you should put back at least 38% of what you get for the taxes  that will have to be paid. Now you are looking at $6750 in real $$$. See if he can take a loan against it and pay it back with his employer

Answer 2

You won't get 10k out, that is for sure! You have to check with your employer for penalties & taxes etc.

Answer 3

They normally withhold 20% for taxes ($2700).  However, your withdrawal will be taxed as ordinary income plus a 10% penalty when you file your income tax for 2008.  So, you would probably get a check for $10,800 but your tax liability would probably be between $2700 and $3400.  So you could end up owing more money when you do your taxes.