IRA account?

Question

Is it possible to set up a IRA account and rollover what I have in my 401k plan at my work, then withdraw the money. I need the money that is in my account, but I can't withdraw early, can't get hardship withdrawals or loans, trying to find a way to access it. Any advice???

Answer 1

You could quit your job - Then they would probably let you roll over the money into an IRA. Then you could withdraw it. - But if you do this (assuming your are under 59 and 1/2 years old) plan paying a 10% penalty to the IRS plus perhaps 2 and 1/2 percent to your state (laws vary from state to state) - plus you will pay pa income tax on the full amount withdrawn. - Overall you would probably lose about 1/2 the money to taxes and penalties and you would be out of work.

Some companies will allow loans from 401K plans, but apparently yours does not if I understand your question correctly. - You can't take a loan from an IRA.

Answer 2

i'm going to comprehend in case you do not evaluate this a "superb" answer, because it in basic terms consists of information in the different solutions. besides the undeniable fact that, no single answer is finished. in ordinary, withdrawal from (classic) IRA bills is taxable, via fact the contributions have been deducted while made, and the "settlement" your mom made with the government is that the money are taxed while withdrawn. If lots of the contributions have been non-deductible on the time, then not each and all of the distributions are taxable. you will would desire to locate (all, i'm afraid) your mom's tax returns to verify that, or check together with her accountant. via fact the money have been made obtainable on her death, there is not any "early withdrawal" penalty, so we don't would desire to flow into that. you ought to have had income taxes withheld from the distribution. (that's on the kind 1099-R.) if so, your accountant could checklist that throughout the time of your tax return, reducing the internet tax due. If it were under 60 days in view which you transferred the money, you ought to flow the money to a clean IRA. yet, needless to say, you withdrew the money in 2007, and that's now extra advantageous than 60 days into 2008, so as that would not word.

Answer 3

Generally, the only way to access 401k money is to leave the job and then, as stated above, taxes and penalties will take a huge hunk of it.

Answer 4

30 percent penalty for early withdrawal.