How to Withdraw Money From a 401(k)

Video Transcript

"My name's Phillip Beningoso, I'm an investment professional and I'm going to be discussing how to withdraw money from a 401K. Many employers encounter the issues of whether to withdraw for 401K monthly to pay for large expenses. Investors may need to pay off credit cards or make an emergency purchase to stave off hardships, defined by the Internal Revenue Service. Now, there are several ways you can withdraw 401K money, with no penalty, as long as you can stay within the federal regulations. Let me take you through a few steps that can make that process simple for you. Step one: wait until you have reached the minimum age for withdraw to take out 401K money with no penalty, that can come after the age of fifty nine and a half. Step two: request your old 401K funds from past employers in the form of a check; or three: utilize a Roth 401K through your employer. Four: take out a loan from your 401K to avoid penalties associated with early withdraw. Five: use your 401K without penalty if you are using funds to prevent hardship at home. There are rules and regulations from your employer and your employee and, of course, the federal government. Step six: seek advanced education by taking out loans from your 401K account. Seven: pay off medical bills not insured by your employers plan with principal 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 is Phillip Beningoso and I'm an investment professional."