How can i withdraw the interest earned money from 401k? i already maxed out my loan and hardship. thanks...? -

Hopefully you realize that borrowing from the funds in your 401k account is VERY different from actually withdrawing the money. Borrowing money from the account is bad enough because you d be paying back money that you had saved from tax-free earnings with income that has been taxed plus interest, thus erasing the advantage of having a 401k account in the first place and making yourself a little bit poorer in the end. BUT, withdrawing the money for any reason other than the few exceptions allowed by the IRS will immediately result in a 10% tax penalty. On top of that you will have to report the remaining 90% as taxable income your 1040 and you will have to pay income taxes on the amount. You said you already maxed out on what you might have been able to take out according the IRS s allowance for hardship circumstances. So if you withdraw the rest, you stand to lose quite a bit of your money to Uncle Sam. Read the following page for more information. http://www.money-zine.com/Financial-Plan...|::::|You can t. You d have to quit your job and that while that would give you access to the remaining money, it would make the loan due.