Calling all IT workers - Can you answer some questions?

[EDIGuy]

@thekub,Thanks for the reply, excellent post. thanks for sharing your story.
@tjax1000, that's what I'm afraid of.

Also thanks to everyone else for your posts.

I guess only time will tell what I choose to or not to do. I do not want to dip into my 401k but if the situation becomes dire enough, I may have to. In the meantime I will continue on with my search. Wish me luck. Good luck to you all as well.

[Kaiminani]

Originally Posted by tjax1000

The only real "gotcha" to UPS store boxes, which many will not tell you outright, is that you can't get mail forwarded from that box to your new house when you finally settle down. USPS treats it as a commercial address, which it is, and apparently you can't forward from a commercial address to a residential one. The safest thing is to not have your critical stuff sent to the USPS box, or to retain it for a month or two longer than you really need it, just to make sure all your important change of address requests have went though.

The best thing about a private mailbox is that the USPS is not involved. When you file one of those "change of address" forms with the USPS, they SELL that information to anyone willing to pay for it, its the surest way to get junk mail at your new address (and debt collectors, and any other unsavory character that you might wish to avoid). If you value your privacy at all, you are better off just keeping the private mailbox and using it for everything.

[Kaiminani]

Originally Posted by seain dublin

To OP I really wouldn't touch your 401K(can't believe no one touched on that). You get "dinged" big time on taxes for doing that.

Not if you take a 401k loan. You can 'borrow' up to the lesser of 50% or 50K from your 401K plan for almost any reason (some 401K plans have their own restrictions, but the government does not require them to) and there are no tax penalties. There is a requirement to pay it back, but you can stretch those payments out over 5 years.

If you default on the loan, then you become liable for the tax penalties as if you had made a withdrawal anyway. So you might as well take the money as loan in the first place.

Taking money out of your 401k is rarely a good idea, but chances are if you had taken a loan out before the stock market crash a year ago you would be ahead of the game now. It's up to you to do your own risk/benefit assessment.

[Keeper]

Originally Posted by seain dublin

To OP I really wouldn't touch your 401K(can't believe no one touched on that). You get "dinged" big time on taxes for doing that.

Sorry IMO the only reason you should be dipping into a 401K is an absolute dire emergency. Wanting to move to Tampa doesn't fall into that category.

I would never recommend you take money out of your 401K. You will have to pay taxes plus a penalty for doing that.

I did..

Not if you take a 401k loan. You can 'borrow' up to the lesser of 50% or 50K from your 401K plan for almost any reason (some 401K plans have their own restrictions, but the government does not require them to) and there are no tax penalties. There is a requirement to pay it back, but you can stretch those payments out over 5 years.

Not sure about where the 401K is but where I worked if you took out a loan and left the company you had to pay the loan back when you left or take a tax hit. Since they are not working now they would want to check to see if they have the option to take a loan

[seain dublin]

Originally Posted by Keeper

I did..


Not sure about where the 401K is but where I worked if you took out a loan and left the company you had to pay the loan back when you left or take a tax hit. Since they are not working now they would want to check to see if they have the option to take a loan

Well not a smart thing to do. You take a huge tax hit.

And the OP is working in Mobile, AL. He didn't say he was laid off.

He said he wanted to relocate to Tampa.

IMO to go into a 401K to have money to relocate anywhere is not wise.

Start putting money aside while your looking for work.

[seain dublin]

Sorry I just reread his last sentence, he is not currently working.

Still would hold off and stay with the family in Mobile until you get some leads for work. Not good here either.