Some months back I had a serious medical condition. I have been off work for 7 months and after 6 months my employer could no longer hold my job, thus I am no longer employed. I have a 401K with a fair amount of money in it that I can now withdraw or just let sit there. I am not sure if I can withdraw some of the money or will need to withdraw all of it. Since I have been off work I am behind in some of my bills and I would like to withdraw some of this money in order to catch up. I do have some judgments against me and creditors after me so I am afraid that if I have to take it all out they will come after it. If I do have to withdraw it I would like to have it in something that I can have access to in the event I need it. I am also considering using some to start a small business. What can I do with these funds to prevent creditors from getting a hold of them?
Don't be to sure that your pension or 401K isn't judgement proof! If I were you I would withdrawl the full amount and stuff the money under my matress!! You don't want to leave money in any account when you owe people money! Tac
Your 401K retirement fund is safe from judgment lien. If you are allowed partial withdrawals,you can do that, if not roll it over into an annuity with partial withdrawal privileges,and/or interest income paid monthly. Make sure it is a qualified annuity with an AAA rated Company.If you are under 55, you will have a tax penalty hit if you take it all out at once.
what's the deal with that? mike101 and coldnorth.. why two handles? This board should be better than this.
Eric, what do you mean by "this board should be better than this?" When people use dial-up dynamic IP addressing and multiple email addresses (AOL, Earthlink aliasing, free email address services, etc.), then they can create multiple identities on ANY board. Doc
Ultimately I think most of the reasons for doing so aren't good. However throughout my years on the net, I've personally known people to do it for a number of reasons: 1) They think somebody's going to figure out who they are if they post too much info under one screen name. 2) They're dodging an unwanted obnoxious "new friend" and then spend most of their time under an even more anonymous moniker. 3) They think they embarrassed themselves and want a new start. 4) I myself began on Creditnet a long time ago in a galaxy far away with a different nickname, LOL, but that's a whole other story. I used my real last name as a nickname, and then I quickly figured out that this was a jumbo stupid move. There are lots of reasons people do it, mostly bad I think, but perhaps some are justifiable. Once you've established yourself as a known personality, though, it becomes practically impossible to do so. (So "PsychDoc" is not suddenly going to emerge as "HappyDiva" anytime soon -- much to the relief of my wife too, I would guess.) Doc
I am assuming you had a lot of medical bills with your medical condition? These medical bills can be paid (or simply reimburse yourself) with a penalty-free withdrawal from your 401K.
