NEED QUICK CASH!!!! 40lk?????

[carolinaliving]

My family has been living in a hotel since Jan 25th due to the owners of the home we leased filed bankruptcy and foreclosed(no notice). My question is my husband has almost 10,000 in his 401k with a loan that was taken out last year. The next time we can take a hardship loan out is in May. We need it for not only this room but we are putting a offer on a home today. Earnest money, moving expenses and etc...
Would anyone know if there are any other options to get money from your 401k.
Thanks
carolinaliving

[waziggy]

The answer is yes but you might want to talk with a CPA/tax advisor. One way I know that works is if you're a business owner with a corporate tax id S Corp, C Corp, or LLC you can set up your 401K as a self direct entity and loan i.e. you really invest in your business. You must repay the loan or if the business declares BK you won't have to pay any penalties as it is the result of market conditions but be prepared for an IRS audit if you claim it as a loss writing it off. Get with a CPA to set this up but it's completely legal. There are other ways but you need help from a good CPA. Then again your 401K amount is 10K the penalty is 10% on top of your regular tax bite; the point is that depending on your deductions you may not owe anything. Whatever points you pay on the mortgage will be deductible. Any children for deductions and child credits. Again see a good CPA. They may charge by the hour but it might be worth it.

[BrokeCh7]

Be Careful

It would be best to contact a professional. I once close an IRA and said only 10% i needed the funds. BUT the reality was alot different.

Here is a guesstament of what happened to my $6000.00 early withdraw.
Fed Tax 10% -$600
State Calif. 2.5% -$150
Not bad so fare
Now lets look at the taxes due in my case it bumped me into a higher tax too.
Fed reg Tax -$1320
State Calif - $300
Total Taxes $-2370

So the short of it is my $6000.00 in the hand turned into $3630 come April 15. Here is my advice borrow the money from someone, famliy or friend. Go see a very good tax expert and hope you might get a bigger return. Move to the frount yard of your goveners house and ask him to start doing something about affordible housing.

Good luck i am planning to buy an RV soon and move in to it. This is my solution to finding a home.

[EdytaHome]

A loan is different than an early withdrawl, with a loan you are borrowing against your own money. If you cash it out, you than pay the penalty and taxes on it.