Seeking Some Advice

[DawnJ_]

Hello. New to the boards here. I have a question. My job is currently in the process of giving everyone their retirement funds (keeps them from paying into it etc.) Currently I would like to withdraw some of it to cover some things but I would like to put the remainder somewhere. There is always the deferred comp at work or an IRA. What is the best option for rolling over all but being able to withdraw without penalty or loan? Is there such a monster? And exclude retirement age please. Any advice would be considered. Thanks.

[disneysteve]

If this is money from a retirement plan, you can't remove it without penalty and taxes unless you are of retirement age (59-1/2 typically). I'd forget about withdrawing money from retirement to pay current bills. Roll it over into an IRA and save it for retirement.

[mcfroggin]

I agree. Withdrawing from retirement is a bad idea. There is some exceptions to the fees, but without knowing more, I don't know if you qualify. For that reason, I'd find another way to pay off other debts.

[krantcents]

Before I would consider withdrawal, I might consider a loan. Although it is a better choice withdrawal, it still has it shortcomings. I don't think I have enough information to help more than that.

[jpg7n16]

What is the best option for rolling over all but being able to withdraw without penalty or loan? Is there such a monster?

There is no such animal.

It sounds from your post like your true issue is your monthly budget. Whatever those 'some things' are that you're hoping to pay for, you should try and make them work from your everday budget.

There are some exceptions to the 10% penalty, but those aren't things you'd hope for (death, permanent disability, etc.)

http://www.irs.gov/pub/irs-tege/early_distributions.pdf

[timbuckley10]

Just like jpg7n16 says, the real thing you must focus on here is what these "some things" are and how you can eliminate the short comings of your budget. Rolling into an IRA means you don't touch anything and it never even passes through your hands so avoiding penalties while grabbing some is more or less not an option.