• NotYourSocialWorker@feddit.nu
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    1 year ago

    Interesting, didn’t know of that possibility. Is it also possible to withdraw just a part and save some “for free”?

    I’m not from the US so the exact workings of your pension system is a bit beyond my expertise 😊

    • AA5B@lemmy.world
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      1 year ago

      No.

      – employer matches typically have a vesting period where it’s not yours to withdraw

      — actual withdrawal means paying the taxes you skipped plus a penalty

      – loans can be useful, but you have to pay yourself back and meanwhile that money is not invested.

      – loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment

      – loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees