How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jax Tax Your Own Question
Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
Type Your Tax Question Here...
Jax Tax is online now
A new question is answered every 9 seconds

is there a way to withdraw 401k money (age 57) to open a business

Resolved Question:

is there a way to withdraw 401k money (age 57) to open a business and not get penalized or have less of a penalty
Submitted: 5 years ago.
Category: Tax
Expert:  Jax Tax replied 5 years ago.
There is not. If you can borrow against the 401, that is the best option. There is no penalty exception for opening a business. It is charged against the gross distribution. If you are considered permanantly disabled, you can withdrawal no penalty. If you have retired from your job, you can take periodic distributions penalty free. Talk to your provider about the distributions as they are calculated based on life expectancy and actuarial tables.
Customer: replied 5 years ago.

You stated if retired from my job I may take periodic distribution penalty free even if 57 years old? Also what type of distributions are you talking about a percentage? a specific $ amount?

What if I move my 401 to IRA is there a way to take from that with a lower penalty or no penalty?

Expert:  Jax Tax replied 5 years ago.
Moving it to an IRA will not help. As for the amount under a periodic dispursement, it is based on your anticipated life expectancy and accuarial tables. You would have to get the amount available from the provider.
Expert:  Jax Tax replied 5 years ago.
Here is a great article on this.
Jax Tax and other Tax Specialists are ready to help you