Anyone ever do this? Is your direct manager notified?
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FYI - if you have an active loan and get laid off, you DO NOT need to immediately pay it back. You can pay it back with an automated monthly ACH from a checking account of your choice.
Ask me how I know...
Direct manager is not notified. You can do a hardship withdrawal or a loan. If you choose to do the load you'll pay it back via your paycheck but if you leave or get fired you'd have to pay it all back within a certain timeframe I think it's 30 days or it gets added as income.
You can take a loan out against your 401k. That way you can pay it back over 5 years max and not get penalties like when you take an early withdraw.
@ch+1jtetkvde is correct. Manager is not notified.
Maybe consider a loan instead of a full-on withdrawal, if feasible...
I did a 401k loan to pay off higher interest credit cards when I got into trouble early in my career. It helped a ton and I was able to get back on track.
Whatever you decide, take care of yourself and I hope things improve for you soon.
P.S. Depending how well you get along with your manager (and if they are one of the few "nice" ones, maybe mention you are considering it. Manager might keep you in mind for a bump up or lean bonus pool in your favor this fall, to the extent they are able to. Managers know their teams are already underpaid/overworked, might give him/her ammunition to make a case with HR for increase in team comp this year. No promises, but never hurts to ask.
best of luck with whatever you are going through.
I have done this before.. your manager is not notified.. This is something very personal for you that does not involve management.. I also hope things get better for you..
Consider the 10% penalty and tax implications. You'll probably be on the hook for close to 30% between the early withdrawal penalty and taxes. Not to mention loss of future growth.
Finance gurus recommended doing this as a last resort. I.e. major medical emergency or to save your home from foreclosure.
Whatever challenges life tossed you, I wish you the best.
I don’t think your manager is notified. That’s your own personal business. Hope whatever you’re going through will sort itself out. Best of luck.