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The Trading Floor (Investing, Stocks, Bonds) Discuss investing and investments here! Do your own due diligence before investing. We are not responsible for any advice or recommendations within this forum! |
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#1
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#2
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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.
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#3
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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. |
#4
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Do you know what the penalty fee is if you cash out?
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#5
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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.
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#6
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C,
could a portion of it be withdrawn and the rest rolled over??? or does it have to be all or nothing? |
#7
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Quote:
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. |
#8
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not that you look anything like sam hebert but perhaps we should talk
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#9
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give me a call at the office.....480-2088 or cdrost@whitneybank.com
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#10
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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!! |
#11
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he's next door
come on by |
#12
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Quote:
????? 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????? |
#13
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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.
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#14
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the less money i give to the government, the better
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#15
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Only if the distribution was for a qualified reason (i.e. first-time home purchase, educational costs, etc.).
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#16
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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. |
#17
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i hate giving them my money!!!
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#18
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glad you answered your own question...
yes its still a penalty. |
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