Innovative said “Actually, I think there is, at a cost — pay your federal and state taxes and early withdrawal penalty of 10% in addition, possibly additional early withdrawal penalty to your state as well. Check with your 401k plan.”
Having tried to do exactly that - the answer was no. I was told it was not possible. The only way out of the plan was termination of employment.
FWIW the NO answer came from my employer and not the plan administrator. The plan administrator has actually been very forthcoming and honest.
Like I said before, I decided I couldn’t work for them any more so now I get to figure out the net present value of tax + penalty vs investment that is free from future legal changes regarding sanctioned retirement. Being free of wallstreet and .gov, at least a small arms length, does have upside as far as I can see.
I hate to say this — keep this post and look at it say 10 years from now.
My prediction is that you’ll regret it.
If you are no longer employed with that company you can roll over your 401K into a R/O IRA, at a mutual fund family or a brokerage firm where you have many choices, and where you can invest it yourself without paying the taxes.
I highly recommend this option — otherwise I predict you’ll regret it. There is nothing out there that you can invest in, without risk to make up for all the taxes and penalties you are paying to take it out from inside an IRA.
In fact, as I said, unscrupulous people are most likely to take advantage of your aversion to the usual investments and you’ll end up losing it all.
Property on the moon gives you a return of 2000% I have lots on the moon for sale for you — send me a check. (Naturally I am being sarcastic — one other word: Madoff — for those who weren’t happy with “normal” returns)