If you don't have money to eat, start visiting food pantries.
The IRS will not intercept the money from the 401K.
However, I don't think it's a great idea for you to withdraw this money. 401K is secure from bankruptcy (it can't be taken during a bankruptcy). Once it's cash, it's cash. You sound like you are on the verge of BK... Don't touch the 401K and you won't lose the money.
If you decide to take the money out of the 401K = you will owe 10% penalty and standard income tax.
What are you doing to increase your income? If I was you / your husband, I'd would be hanging out at home depot or advertising on craigslist for something.
Add'l info: I don't understand the hostility.
- Are you visiting food pantries? If you aren't, that should be one of the first thing you do. Anyone can get food, you don't need to spill your finances or fill out any forms. Most provide fruits and veggies.
- Are you upset that I didn't notice that you already cashed out the money and wished you hadn't. If you are potentially filing BK, you should never cash out a retirement plan.
You'll get the check from cashing out the 401K, the IRS won't intercept that. Some tax will be taken out of it, but very likely not enough so you might owe more when you file next year. good luck.
Hopefully you didn't "cash it all out at once", because if you DID, you are in an even worse position than you were....ALL that money will be counted as regular taxable Income for this tax year, so even if you have NO income from a job, you may find yourselves in a higher tax bracket!
If your husband just "did this on his own" without consulting a Tax Accountant (or even just an "educated friend") then you should take his financial privileges away!
The IRS will take the money you owe PLUS the money you already owed...
Time to get a Professional (or at least someone with some Common sense!) involved.....
You posted your personal business for people to give you their opinion but then state you didnt ask for a person opinion anyway no they will not intercept but expect to owe more to the IRS next year due to cashing out before 59 1/2
The IRS don't care about having money to eat. Your personal situation does not have anything to do with business.
We must get wiser with time or we will remain a fool. I know you are upset but please know that it is no growth in pointing the finger. Nobody say life is going to be easy. We must use the bricks that people throw at us to build a solid foudation.
When you walk through the fire, you will not get burned, when you use God as your refuge. You can’t change the direction of the wind but you can always adjust your sails to reach your destination. Remember that.
Best of luck.
They will not intercept the check. However you are expected to pay your taxes on anything you withdraw. You better have enough to pay taxes, otherwise the IRS will hound you for the rest of your lives. In addition, they'll also add penalties & interest.
The IRS is the most ruthless organization in the US government. You never (ever) want to get on their 'bad side'.
