401k info.?

Question

I currently have 401k plan at my job. If I was to change jobs would I have the option to cash out the 401k rather than rolling it over to another job or IRA. If I am able to cash it out how much of penalty is there and how soon can I expect to see the money? How does an IRA work? Thank You in advance for your help.

Answer 1

You have a few options.
1. You could keep your account invested as is, if the plan allows it.
2. You can roll it over into an IRA. An IRA is another type of retirement plan, where you plan to keep the money until retirement. If you take the money prematurely, you will pay a 10% penalty and income tax on the proceeds. You can have a variety of investments in an IRA - unlike a 401k plan where you are limited by the plan options. You can contribute to the IRA in future years, also.
3. If your new job has a 401k plan, it may allow you to roll your old account into the new one. This is a good idea.
4. You could cash it out. You will be charged a 10% penalty by the IRS if you are under 59 1/2, and the money will be considered earned income in the year that you receive it, so you will have to pay income tax on it come April 15th. If you decide to cash out, you will need to submit a withdrawal form. Some plans pay out once a year, some quarterly, some right away - check with the HR Dept. for how soon you can expect to receive the money.

Answer 2

Just a word of advice...do not cash out...it's not the penalty that should concern you... that money ( and the boodles and boodles that will grow from it ) is your future. Your future. Your future. Yes I said it three times...if I had more paper I'd say it three million times !! You have somehow managed to keep on living even though you've put some money aside...you've gotten used to it...please. please, learn to live with it...... don't take it out and blow it on something that you think you "absolutely have to have !!!" ( Unless it's a kidney transplant, you'll get by without it.... roll it... when you can.. save it..you will be amazed at what it will amount to...IF you just let it alone!

Answer 3

I guarantee you that 20 years from now you will consider the cashing out of your 401K to be one of the biggest financial mistakes you ever made.

Roll it over to Schwab, Fidelity, Vanguard etc.

Answer 4

you're able to do it now or once you're married. undergo in innovations as quickly as you're married your 401k beneficiary will default on your substantial different notwithstanding that could be a stable ingredient to bodily substitute it besides.

Answer 5

http://finance.yahoo.com/ Hope this helps. Good luck