I am very grateful for the advice given on my husband's retirement account, but the problem I'm concerned about is that they say you cannot take the money out unless you quit and get the money a year later or retire. Is there, in anyone's vast experience, a way around this, paying penalties, etc. and where would we look for the clause in the paperwork? Thank you Jan

-- Jan (phytorx@lanset.com), July 31, 1999

Answers

"...they say you cannot take the money out unless you quit and get the money a year later..."

Uhhh-at my place I would get the money in three weeks MAXIMUM if I were to quit. Glad I don't work for your outfit. I don't think that is quite right-are you sure about that time period?

As to your cashout process-no, I believe that the only other way for the family to get at the money without penalty and with normal taxation is for the holder to-heaven forbid-die prematurely.

JJ

-- Jeremiah Jetson (laterthan@uthink.y2k), July 31, 1999.

You can get the money if you have a hardship reason, although you'll still have to pay the early withdrawal penalty. I closed one of my accounts because I ran up large credit card debts due to my involvement with commodity investing. You'll have to sign a form explaining the reason you need the money (Don't say for Y2K concerns). The money also has to be counted as income; it is a tremendous rip-off considering it is your money!

-- Jack Williams (Jack7@campuscwix.net), July 31, 1999.

Jan, I didn't see your original thread, and my time here is really limited today, so if I'm being repetitive, forgive me!

My husband's employer allows him to 'borrow' funds from his 401k, and then would deduct the payments from his pay. I'm sure you've already asked your husband's place and have been told it can't be done.

Have you thought about going to a bank or lender and asking for a loan secured by your husband's retirement account? Even though it's currently 'untouchable', I'll bet you could find a lender who would be happy to put a lien on it. That way, if you can't repay the loan, the lender would have first rights to the amount in the account. If you've already decided that the money would be best spent now to prepare for Y2K, then you've already made the hardest decision. Right now it seems to us that every one and their cousin Mel are trying to lend money to consumers.

We have already borrowed some of my husband's retirement funds to finance some preparations; we can't help feeling that it might just disappear with lots of other electronic money. So better to have it in hand now, using it to preserve life and limb if possible.

Good luck!

-- Arewyn (isitthatlate@lready?.com), August 01, 1999.

Is there any way you could go over the paperwork with an attorney or a financial planner? They would be in the best position to give you advice that actually deals with your exact situation.

-- mommacares (harringtondesignDELETEME@earthlink.net), August 01, 1999.

My 401k plan allows taking out a loan (up to 50%)...

-- Mad Monk (madmonk@hawaiian.net), August 01, 1999.