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All right let's go to -- next and then is in the state of what Washington.
-- -- -- -- -- -- -- I'm good date how are you doing.
Better than I deserve sir how can I help.
Well I've kind of come up to a quandary I recently found out that after eight years with the company.
Being let go there they're closing down businesses and unfortunately I recently well not recently -- a while back -- got a large 41 K alone men.
Current balances -- -- 141000 dollars from.
And I'm wondering what is the best way to try to minimize my stupid tax comment -- whether it would be Smart to.
You know take -- small alone in order to pay that back to avoid these probably at least 30% -- minute and that being on this or whether.
I should just bite the bullet again.
The money and pay -- back.
And here's here's what -- gonna hear why that's gonna cost you 10% or 8% or whatever -- -- local credit union right.
If you don't this loan if you do not pay it back is going to be considered an early withdrawal and they're -- -- -- 10% penalty Pletcher tax rate which is probably gonna look more like.
You know 35 or 40%.
And I don't want to play that some of the borrow the money and they just have the dead over here.
And and that's fully fund your 401K and I'm -- -- that to NRA.
As you leave the company.
-- direct transfer -- rollover.
And and you don't you don't -- -- the -- to you because they have to withhold on that she looks like your mutual funds that you want your IRA and and -- a direct transfer -- -- he found a new job yet.
Yet not yet you know publicly that looking million scares me just.
I think that the -- 300 dollar payment when I don't have any income coming -- Well you know he's got the option of cashing out the -- later.
And paying off the loan if you will if you wanna take the hit -- -- take -- at any time.
Okay so look I needed the cash into the higher -- that in order to.
Felt kinda make ends meet in the meantime to find a job I could be that it wouldn't you pay the penalty on the.
No no you're not right you roll 401K to an IRA you get in a panic over this loan.
And you have to catch it out to pay off alone you're gonna pay the exact same penalties as if you don't know get the loan.
-- I don't want you to do that but right now and -- we're gonna pay -- -- we're gonna pay 10% plus my tax rate today.
Or we might have to later.
That's what we're saying and I'd rather do the might have to later.
I -- I did a lot of that went.
And I you know so it doesn't doesn't -- -- -- any penalties or anything like that if you catch that IRA you don't get nailed just as hard -- it because the if you don't pay the 401K loan back now -- -- -- for a one carry out some undoing of everything I can avoid.
Messing with that -- -- other -- I don't cash out retirement accounts except to avoid bankruptcy or foreclosure.
A few minutes ago -- cash one out.
Because the guys need the moneys shall -- he was fighting cancer.
And so down might do it in two bitten and blessed for facing foreclosure -- bankruptcy.
We let the money sit there and until then.
So on the point being hopefully you get re employed pretty quick and you move on -- going to be -- -- for.
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