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  #1  
Old 10-13-2009, 10:28 AM
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What are my options for rolling my money out of my former employers 401k??
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Old 10-13-2009, 11:05 AM
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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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Old 10-13-2009, 11:10 AM
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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.
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Old 10-13-2009, 11:13 AM
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Quote:
Originally Posted by cmdrost View Post
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?
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Old 10-13-2009, 11:49 AM
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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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Old 10-13-2009, 12:11 PM
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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could a portion of it be withdrawn and the rest rolled over???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?
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Old 10-13-2009, 01:36 PM
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Quote:
Originally Posted by jlincecum View Post
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could a portion of it be withdrawn and the rest rolled over???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.
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Old 10-13-2009, 01:37 PM
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not that you look anything like sam hebert but perhaps we should talk
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Old 10-13-2009, 02:14 PM
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give me a call at the office.....480-2088 or cdrost@whitneybank.com
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Old 10-13-2009, 03:21 PM
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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!!
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Old 10-13-2009, 03:24 PM
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he's next door

come on by
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Old 10-13-2009, 04:25 PM
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Quote:
Originally Posted by cmdrost View Post
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?????
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Old 10-13-2009, 04:28 PM
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Quote:
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????? 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.
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Old 10-13-2009, 04:30 PM
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the less money i give to the government, the better
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Old 10-13-2009, 04:35 PM
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Quote:
Originally Posted by Gerald View Post
????? 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.).
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Old 10-13-2009, 05:47 PM
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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.
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  #17  
Old 10-13-2009, 05:49 PM
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i hate giving them my money!!!
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  #18  
Old 10-14-2009, 08:22 AM
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glad you answered your own question...

yes its still a penalty.
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