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9 answers

Yes, there is a penalty of 10% and it usually takes a few months

2006-07-14 04:25:04 · answer #1 · answered by 3eleven 4 · 0 0

Your employer did not cash out your 401k. Charles Schwab did. For legal reasons, your employer has no access to your 401k account. Most plans have minimum amounts (usually around $5,000 so yours was actually more generous). If you don't roll it over, you will be assessed a 10% penalty at tax time plus regular income tax. The 20% that they withheld rarely covers this. You can roll it into an IRA at any bank or brokerage. However see if Charles Schwab can make arrangements to have the whole $1,010 rollover. If you only put in the $810, you will still have to pay tax and 10% penalty on the additional $200. You have 60 days to get the money into a new account from the date it was taken out. So don't let it wait, since it takes time to set up. If your account went up from $930 to $1200 in a short time, it can also lose that amount in a short time. Without seeing what was in the account, I can't tell for sure.

2016-03-15 23:53:56 · answer #2 · answered by Anonymous · 0 0

Yes you can cash in your 401K from a former employer as long as you did not transfer it over to your new employers 401K plan. All you would have to do is contact the 401K investment co. and they should be able to get the date you terminated and send you a check usually within a few weeks.

2006-07-14 04:28:46 · answer #3 · answered by Dameion S 1 · 0 0

Depending on how bad you need the money, you have to be willing to pay a fee for cashing out early on top of paying taxes on it. If you're currently working at another job, contact their Human Resources department and ask them about a "rolling over" your old 401K. You can add it onto your current 401k, or start a new 401k at your new job. If you need money from it, roll it over and talk to your HR department about a possible loan against your 401k. Not the best option, but I am not sure if you're cashing it out because you need the money, or cashing it out jsut because you don't work there anymore.

2006-07-14 06:05:23 · answer #4 · answered by dougzinboston 4 · 0 0

Hi ryan,

bigrob is correct. It will be closer to 40% after all is said and done.

And it depends on your the plan administrator. Anywhere from 1 to 4 weeks is average.

Good Luck,
~Trey
Plan administrator of a 401k.

2006-07-14 06:29:51 · answer #5 · answered by ~Trey 3 · 0 0

yes, but you will pay a penalty and owe taxes for the money.

its better to put it into a new 401k or an IRA

2006-07-14 04:25:42 · answer #6 · answered by Kutekymmee 6 · 0 0

on top of 10% penality, you will have to pay tax too!

don't do it unless you really need the money. I did it just because i needed the money for mortgage. It shouldn't take too long. Maximum a week!

2006-07-14 04:31:35 · answer #7 · answered by LetMEtell&AskYOU 5 · 0 0

i had a friend who did it. he took money out 8 different times. it didnt take only a couple days for him to get the money. he got it in the form of a check. but you get penalized each time you take out the money and you also have to pay tax on it.

2006-07-14 04:26:03 · answer #8 · answered by Anonymous · 0 0

I believe that with the penalty and tax liability that you will find that you will lose closer to half.

2006-07-14 04:26:33 · answer #9 · answered by bigrob 5 · 0 0

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