When Does It Pay To Cash Out Your 401(k)

<p>If you contributed to a deferred account, you did not pay taxes on that money. Once you withdrawal it you will be required to pay taxes on it, plus any earnings and vested matching. Depending on your federal and state brackets that can be a large portion.</p> <p>Not all the money stored in a Roth version is safe either. Yes, you paid taxes on the principle before you contributed, but the non-contribution part (the interest you earned and the company match, if vested) will be taxed for unqualified distributions. Therefore, you will be required to pay taxes on the non-contribution money. You cannot elect to take the contributed portion only.</p> <p><a href="https://medium.com/the-investors-handbook/when-does-it-pay-to-cash-out-your-401-k-4eeef3e395ea"><strong>Read More</strong></a></p>