I want to withdraw from my 401K and put into a account with potential growth. I do not want to pay any penalty for withdrawing. please help!
2007-08-22 10:06:22 · 8 answers · asked by sillygirl 1 in Business & Finance ➔ Personal Finance
Yes you can.. and you should.......0 match means no ROI except the capital gains..
Go to any discount brokerage or bank, and ask them to roll the 401K into a traditional IRA ( which is another tax deferred retirement vehicle).
If you are vested in your 401(k), there aint a damn thing the company can do to stop you.
WISE move on your part... VERY WISE....
2007-08-26 08:30:30 · answer #1 · answered by I Can Count To Potato 7 · 0⤊ 0⤋
Not worth the penalties. They will destroy any potential gains that you will make by moving the money. You will immediately lose 20% to taxes.
Recommend that you move the money to another fund within your 401(k), most companies offer more then one option. The general rule is:
Bond funds have less chance of losing money, but generally do not make a lot of money each year. They are a good bet if you plan on retiring in the next 5 years or so.
Stock funds are riskier, but usually gain more in the long run. There is a chance that the value of the fund will drop, and subsequently, your balance, but in the long run, they perform better then bonds.
This year the stock market has been very up and down, and it is possible that the stocks that your 401(k) have invested in have not gained. But, odds are, they will gain over the next several years.
My recommendation, leave the money in the 401(k). If you are leaving the company, roll the money over to an IRA.
2007-08-22 11:28:56 · answer #2 · answered by cbmttek 5 · 1⤊ 0⤋
I know how you feel. No, you can't take any money out of your 401(k) plan until you retire or leave the company. If either of those are the case, and if you'd like to know what your options are, you can check out http://www.plannerconnect.com/retirement-planning-401k-401k-distributions.html and then what to do when you take out the money, visit http://www.plannerconnect.com/retirement-planning-401k-401k-rollover.html.
Really, since you're not getting any match, you might want to put future money into an IRA, which has the same tax savings, but more investment options.
2007-08-24 07:01:13 · answer #3 · answered by homerocks7001 2 · 0⤊ 0⤋
Probably not.
Generally, the only way to access the money in the 401k is to leave the job.
What is it invested in?
You may be able to move it around within the 401k to a better investment. Give the trustee a call.
2007-08-22 10:14:49 · answer #4 · answered by Wayne Z 7 · 0⤊ 1⤋
Wayne is right. You can't touch it without penalties unless you leave the job. You probably don't have it invested in the right things. You need to be in stocks. That's the way to make your money grow. If they offer a Roth option that's probably your best bet. If you're not in that now make all future contributions to a Roth. So what if you're not getting a match? Make your own way!
2007-08-22 10:42:20 · answer #5 · answered by Big R 6 · 1⤊ 1⤋
Dari It means that for each greenback hat you put in, they are going to put in $.50. maximum 401Ks enable a classic non tax maximum of seven% of your gross earnings. in case you decide on for that p.c. and it equals $a hundred and fifty each and every payday, your enterprise enterprise will put in one greater $seventy 5. the place else are you able to get a fifty p.c. return in one month? take income of the 401K and be very aggressive interior the investments you decide on for! a reliable great cap inventory fund is a great determination. Soccerref
2016-10-16 12:21:23 · answer #6 · answered by ? 4 · 0⤊ 0⤋
If you quit contributing, you might be able to roll it into a Roth IRA, i'm not sure. If the money goes straight from the 401k to the IRA, without you touching it, you wouldn't have to pay.
2007-08-22 10:22:30 · answer #7 · answered by bookladyinred 2 · 0⤊ 3⤋
roll it over to a ira and invest in something like mutual funds!!!
2007-08-26 04:06:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋