I have a small 403B account from a job I know longer work at. I am wondering if I can somehow close out the account and withdraw the money. Its not much but my family is relocating and it would help out. I'm wondering how I would go about doing this, and how much it would cost me in fee's. I'm not sure if it matters, but I live in Minnesota and I stopped working for this company in Dec. 2006. Any help or advice would be appreciated. I can't afford to see a financial planner or attorney or anything lilke that right now.
2007-07-09 13:32:48 · 3 answers · asked by LiLiJo 3 in Business & Finance ➔ Personal Finance
Contact the administrator they should know. I think they have penalties probably 10% if you are under 59.5 and you would add the amount to your taxable income so you would be paying your highest marginal rate, you may also have state or local taxes. You could lose as much as 50% to taxes and penalties.
You can roll it into a IRA then only take as much as you absolutely need so you don't lose as much of your life savings. If your life savings is already low you can't afford to lose it.
2007-07-09 13:39:14 · answer #1 · answered by shipwreck 7 · 0⤊ 1⤋
You should be able to withdraw from your 403B and avoid the 10% early withdrawal penalty due to being disabled. Typical proof of disability is the Notice of Award you receive when you were approved for Social Security Disability benefits. However, you may still be subject to regular Federal income taxes since the money that went into the 403B was probably never taxed. You may also be subject to State income taxes but this depends on the state tax laws where you live.
2016-05-22 00:06:43 · answer #2 · answered by ? 3 · 0⤊ 0⤋
You could roll it over into another retirement plan(no fees) or you could take a lump sum which is 20 % taxes right away and you could still be liable for another 20% at tax time. I would hold on to it till you find a job you could roll it over to.
2007-07-09 13:44:31 · answer #3 · answered by jojo 6 · 0⤊ 0⤋