How to Withdraw 401(k) Money With No Penalty

Video Transcript

"My name's Phillip Beningoso, I'm an investment professional, and I'm going to be discussing how to withdraw 401K money with no penalty. Many employers encounter the issues of whether to withdraw 401K money to pay for large expenses. Investors may need to pay off credit card debts, make an emergency purchase, or starve off hardship as defined by the Internal Revenue Service. There are several ways you can withdraw 401K money with no penalties, as long as you stay within the federal regulations. Let me take you through a few quick steps here, that can make this process quick and painless. Step one, wait until you have reached the minimum age for withdrawal to take out 401K money with no penalty. If you take it before that time, you can take up to a ten percent penalty on top of any type of taxes that you would have to pay. Two is to request your old 401K fund from past employers in the form of a check. Three, utilize a Roth 401K through your employer for flexible withdrawal policies. Four, take out a loan from your 401K to avoid penalties associated with early withdrawal. Five, to use your 401K without penalty, if you use funds to prevent hardship at home. And again, you'll have to follow the guidelines of the federal government and your employer. Six, seek advanced education by taking out a loan from your 401K, or, seven, pay off medical bills not insured by your employer's plan for principle from your account. The information provided here is for informational purposes only, and should not be considered an individualized recommendation or personalized investment advice. Any investments or strategies mentioned here may not be suitable for everyone. My name's Phillip Beningoso, and I'm an investment professional."