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jlincecum
10-13-2009, 10:28 AM
What are my options for rolling my money out of my former employers 401k??:help:
longsidelandry
10-13-2009, 11:05 AM
I need to know the same thing. I have a few thousand just sitting in my 401k over at Baker Hughes that I need to do something with.
cmdrost
10-13-2009, 11:10 AM
always have 3 options:

1 - Leave it there
2 - Cash out
3 - Rollover to another qualified plan.
3A-Either with new company 401k that will take rollovers
3B- or do an IRA

Unless in a bind financially, I always recommend option 3.
longsidelandry
10-13-2009, 11:13 AM
always have 3 options:

1 - Leave it there
2 - Cash out
3 - Rollover to another qualified plan.
3A-Either with new company 401k that will take rollovers
3B- or do an IRA

Unless in a bind financially, I always recommend option 3.

Do you know what the penalty fee is if you cash out?
cmdrost
10-13-2009, 11:49 AM
IRS takes 10% out for any early withdrawal. Then the rest is treated as normal income, so depending on your tax bracket (if in 25% tax bracket), its a total of 35% going to the IRS. Again, could be higher or lower depending on your bracket.
jlincecum
10-13-2009, 12:11 PM
C,
could a portion of it be withdrawn and the rest rolled over??? or does it have to be all or nothing?
cmdrost
10-13-2009, 01:36 PM
C,
could a portion of it be withdrawn and the rest rolled over??? or does it have to be all or nothing?


No, you can take some if you need it and roll the rest. Make sure to do it that way instead of a full distribution so you don't get slammed on taxes.
jlincecum
10-13-2009, 01:37 PM
not that you look anything like sam hebert but perhaps we should talk
cmdrost
10-13-2009, 02:14 PM
give me a call at the office.....480-2088 or cdrost@whitneybank.com
SULPHITE
10-13-2009, 03:21 PM
I may want to talk as well but you have to have lacey in the room the whole time!! LOL!

Also thanks for providing this information. I've learned a great deal from this thread and I'm sure others have as well...thanks and keep it coming!!
cmdrost
10-13-2009, 03:24 PM
he's next door ;)

come on by
Gerald
10-13-2009, 04:25 PM
IRS takes 10% out for any early withdrawal. Then the rest is treated as normal income, so depending on your tax bracket (if in 25% tax bracket), its a total of 35% going to the IRS. Again, could be higher or lower depending on your bracket.


????? Early withdrawals

I believe there is an exemption on anything less than $ 10,000 taken out of an 401K plan. If you take out less than $ 10,000 from a 401K plan.....there is no 10 % penalty.

Is this correct?????
longsidelandry
10-13-2009, 04:28 PM
????? Early withdrawals

I believe there is an exemption on anything less than $ 10,000 taken out of an 401K plan. If you take out less than $ 10,000 from a 401K plan.....there is no 10 % penalty.

Is this correct?????

That would be great if that's the case because I have less than 10K in mine and I could really use it but I don't wanna pay all that penalty and taxes at the end of the year.
jlincecum
10-13-2009, 04:30 PM
the less money i give to the government, the better :p
ShadMan
10-13-2009, 04:35 PM
????? Early withdrawals

I believe there is an exemption on anything less than $ 10,000 taken out of an 401K plan. If you take out less than $ 10,000 from a 401K plan.....there is no 10 % penalty.

Is this correct?????

Only if the distribution was for a qualified reason (i.e. first-time home purchase, educational costs, etc.).
Gerald
10-13-2009, 05:47 PM
My Correction.....

I looked up my old Tax records......8 years ago, I did pay a 10 % penalty on that 401K withdrawal. Form 5329.

I must be having a Sr. monent.
jlincecum
10-13-2009, 05:49 PM
:headknocker: i hate giving them my money!!!
cmdrost
10-14-2009, 08:22 AM
glad you answered your own question...

yes its still a penalty.