Should I cash in my 401K?

-I have a 401K from my last job that I worked at for 3 years. I lost my job in september. I got a new job in december but it is for a government funded non-profit company so I no longer can get a 401K. My finance just lost his job and we are trying to hold up a household for us and my 2 kids on my income which is only about 32,000 a year. I am struggling to pay the rent, the bills, and also pay for a wedding. Will cashing in my $4000 401K help me or hurt me?Almost anybody can have a 401k, so you can probably roll over the old one into a new one. It just won't get any matching funds from the new employer. After taxes and penalties, $4,000 won't amount to much, so don't cash it in. The long-term value will be much higher. If money is that tight, do a smaller wedding or wait til the boyfriend gets a new job.
This should be an absolute last ditch effort. There are early withdrawl penalties as well as tax penalties that must be paid and you will get far less than you $4000. I would suggest trimming expenses. Very often I see people who have many small "pleaure" expenses, such as montly movie rentals, the unlimited phone plans, extra services on home phones, multiple salon visits, etc. Many people do not realize how much money can be saved by putting these expenses on hold temorarily until you get back on your feet.
Well, of course it will hurt you.

This is never a positive financial thing to do.



What to expect: Taxes (your regular tax rate), plus a 10% penalty.

Your employer may keep 20% to help you pay for all this at tax time.

(you'll understand once you go through all this)

If the company does not hold any of it:

Remember at tax time: your current tax rate (the distribution can knock you into a higher bracket), and a 10% penalty. So try to keep some money set aside for then
You'll end up with about $2,800 and no retirement plan.

Go to the court house and ditch the wedding plans. That's the best option.
Bad idea unless you are really desperate.
cash it dummy