You can open a 401k plan at a bank, but it will have a designated monthly contribution (usually starting at a minimum of $50.) It's different than an IRA because 401k plans have much higher contribution caps than IRA's. (it may probably be a ROTH 401(k) plan which is post-taxed savings, but deduction won't be taxed unlike normal 401k's unless you withdraw prior to retirement age.)
reply to post by hqokc
I also looked into cashing out my 401k and wasn't permitted to do so. I can take loans against it for 50% of the value, but that's it.
Taking a loan out against your own money is the dumbest financial thing you could ever do outside of keeping your savings in cash. That also goes for loaning against equity balances in insurance funds. Why would anyone want to close out a retirement account? You can alter the investments in anyway you wish (even while with the employer who manages the account) and if you have a company that matches a portion of the contribution that easily the best investment someone could make...
edit on 10/23/2011 by Rockpuck because: (no reason given)
