This form is a sample letter in Word format covering the subject matter of the title of the form.
Letter Payoff Loan With 401k In Contra Costa
State:
Multi-State
County:
Contra Costa
Control #:
US-0019LTR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
Typically, you can't close an employer-sponsored 401k while you're still working there. You could elect to suspend payroll deductions but would lose the pre-tax benefits and any employer matches. In some cases, if your employer allows, you can make an in-service withdrawal if you've reached the age of 59 ½.
As mentioned, hardship distributions may not be subject to the 10% early withdrawal penalty, assuming your financial need qualifies. (Of course, if you're over 59½, this wouldn't apply.) You aren't allowed to repay the sum you withdraw and can't roll any unused funds over into an IRA.
Early withdrawals from a 401(k) account can be expensive. Generally, if you take a distribution from a 401(k) before age 59½, you will likely owe: Federal income tax (taxed at your marginal tax rate). A 10% penalty on the amount that you withdraw.
More info
If you face a real emergency and have exhausted all other options, a loan from your retirement plan may be your best alternative. We are pleased to offer the 403(b) Tax Sheltered Annuity Plan and the 457(b) Deferred Compensation Plan to eligible employees.Notably, that subdivision also explicitly limits the effectiveness of a payoff demand statement to 30 days, a time period exceeded in this case. With a 401(k) loan, you borrow money from your retirement savings account. Find your Contra Costa Arc 401(k) account in minutes and log in to access your savings. Explore the benefits of a 401(k) rollover with this helpful guide. Contra Costa College participates in the Federal Direct Student Loan Program. Students may submit a Loan Request online through InSite. Retirement plans may offer loans to participants, but a plan sponsor is not required to include loan provisions in its plan. Contra Costa Times, CA - Mar 31, 2007.
