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Can you close out your 401K before discharge of your chapter 7?
Wiki User
∙ 14y ago
Not a good idea, unless you have a very small amount left in it. The penalty (10%) and income taxes will have to be paid, and if it is a large amount, it will become an asset of the bankruptcy estate and the trustee will take it. It is exempt in the 401(k), but not in your pocket or bank account. You could probably amend your petition documents to exempt the amount if you have exemptions available, but you should discuss it with your attorney or get a bankruptcy attorney in your area to review this.
Wiki User
∙ 14y ago
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Can you take money out of your 401k after you file bankruptcy?
Yes, but not until your discharge. If you take money out of a 401K after you file and before discharge, the money is no longer exempt and could be taken by the Trustee. If you take it out after your discharge the money is yours.
Can you close your 401k?
can you close out your 401k and still receive unemployment benefits
Can you withdraw 401k after discharge in bankruptcy?
The MAX amount you can draw is 300k.
Will having a 401k in ga affect your chapter 7?
BK is a Federal thing...and 401k is exempt everywhere.
Does chapter 7 affect 401k?
No...you must disclose it but it will be exempt.
Is it legal to borrow from 401k before chapter 7 bankruptcy is discharged?
Yes, but it is one of the absolute stupidest things financially you can do. By the end of th BK you will lose the 401k money, which is only protected while it is IN the 401k, and be left with the debt to the plan, which won't be discharged and will seize the money in the plan to be paid.
If you file chapter 7 do you lose your 401k?
NO. Absolutely fully protected...
When filing bankruptcy chapter 7 will they come after your 401k?
No. Never. It is exempt and protected.
Do garnished wages get deducted before or after 401k contribution?
Before.
How can I cash in my 401K plan?
You can cash in your 401K plan upon retirement or after a penalty before your retirement age.
What is a roth 401k retirement plan?
In a 401k roth plan a person can decide to contribute before or after taxes, which is not available in a regular 401k. This can be very beneficial to some people.
Is an IRA protected under chapter 7 Like a 401K is protected when filing chapter 7?
all ERISA qualified retirement plans are protected from creditors in a BK.
