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Without the Bank PodcastAuthor: Mary Jo Irmen
The archaic system of giving up money today, taking on risk, and hoping to retire is B.S. This podcast seeks to help make you responsible for your money and your future. You are the one who cares more about it than anyone else. I am here to help you and provide the honesty you need. No sugar coating. No false claims. Just straight up truth. Language: en Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Your 401k Isn't as Accessible as You Think (Ep. 268)
Thursday, 7 May, 2026
The 401k access rules they never taught you — RMDs, hardship withdrawals, loans & hidden costs. 👉 More Without the Bank Here: https://www.youtube.com/channel/UCXYvzroUouEMsTGKFw5nJHQ In this episode, Tarisa breaks down the third half-truth of 401k plans: access and distribution. The rules around when and how you can touch your own retirement money are far more restrictive than most people realize — and ignoring them could cost you thousands. In this episode: ✅ Required Minimum Distributions (RMDs) — why the government forces withdrawals at 73, even if you don't need the money ✅ Hardship Distributions — the only 5 qualifying events that avoid the 10% early withdrawal penalty ✅ 401k Loans — the repayment rules, what happens if you leave your job, and the hidden opportunity cost ✅ Inherited 401k — what your beneficiaries actually owe in taxes when they inherit your account ✅ Whole Life Insurance — how it offers uninterrupted compounding and flexible access as an alternative This is Part 3 of our series on the Top 5 Half-Truths of 401k. Don't miss it. 💡 Key Ideas 1. RMDs force withdrawals at 73 — ready or not. The IRS mandates distributions starting at age 73 to collect deferred taxes. Even if you don't need the money, you're required to take it — and it can push you into a higher tax bracket. 2. Only 5 events qualify for a penalty-free hardship distribution. Medical expenses, primary home purchase, eviction/foreclosure prevention, funeral costs, and primary residence repairs are the only IRS-approved exceptions to the 10% early withdrawal penalty. 3. 401k loans carry more risk than most people know. You can borrow up to $50,000, but if you leave your job, the balance may be due in as little as 60–90 days. Miss the deadline and it's reclassified as a taxable distribution — plus a 10% penalty. 4. The real cost of a 401k loan is the compounding you miss. Money borrowed from your account stops earning. It's not just the interest — it's the opportunity cost of interrupted growth over time. 5. Whole life insurance (especially when structured for Infinite Banking) lets your money work while you borrow. Unlike a 401k loan, policy loans use the insurance company's money — your cash value keeps earning uninterrupted compound interest the entire time. Chapters 0:00 - Introduction & Series Overview 1:33 - Required Minimum Distributions (RMDs) 2:34 - Hardship Distributions & Qualifying Events 3:30 - 401k Loans: Rules & Repayment 6:00 - The Hidden Opportunity Cost of 401k Loans 8:04 - Inherited 401k Tax Rules 8:35 - 401k Limitations Recap 12:30 - Whole Life Insurance as an Alternative 16:30 - Wrap-Up & Next Episode Preview 📅 Ready to build a strategy that actually works for you? 👉 Get the book here and schedule your call with Tarisa or Mary Jo → https://www.withoutthebank.com/book
