401K taking a massive beating due to no job...

[Guest bill545]

The gist: I'm unemployed and have been for several months. Savings quickly evaporated and I've been forced to liquidate large portions of my 401K to cover bills (including a big fat mortgage) ....and it's doing very serious damage to my retirement "nest egg." (oh yeah, being single doesn't help, ie no wife to help cover the bills). I am selling my house, but short of another job finally coming along, do I have any options to help "save" my 401K? eg I take it I can't do an equity loan given that I'm unemployed........

Anyone??

[JanetM]

Get a couple room mates to help pay the bills.......

[Tom Poje]

in all seriousness, there is not much you can do unless your 401k plan allowed loans to terminees and allowed one to pay back outside of payroll. from the sounds of your situation I doubt that is an option.

e.g. you dont get a free ride, you have to come up with the $ to pay back the loan even if the company approved it. I'd go out on a limb and say with most companies that would not be a loan provision to pay back outside of their own payroll. sorry, and good luck finding something.

[E as in ERISA]

If you're thinking that you heard that there was something special about 401(k) plans for someone in your position, it's the fact that creditors generally can't attach one's 401(k) assets to pay off other debts that one may be running up at this time.