I have a small amount of money in a 401k from my old job. I just wanted to know if I could get this money and what that would take.
2007-12-04 12:51:59 · 5 answers · asked by LAH 2 in Business & Finance ➔ Personal Finance
Do not withdraw from your 401(k)! Thre reason this is is because of the taxes and penalties you will face. You will be charged 10% for drawing on it prior to retirement and then you will face ordinary income tax. This means you will be taking a 30-40% hit. Roll your money into an IRA and leave this money alone if you possibly can, you will need it more at retirement. Even if it is a "small" amount now, you might be amazed at how much it can grow to by retirment.
Hope this helps!
2007-12-04 16:24:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can roll it over into an IRA with no penalty. If you want to actually take the money out, you'll pay income tax on it as ordinary income for the year you take it out, plus a 10% penalty on the amount withdrawn if you are under age 59-1/2.
2007-12-04 13:01:36 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You can get your money from your 401K, but you will be charged with a 10% penalty for early withdrawal and taxes.
IRS will waive the 10% penalty if you are totally disabled, you died and your beneficiary gets the money, your un-reimbursed medical costs exceeds 7.5% of your income.
2007-12-04 13:02:18 · answer #3 · answered by imisidro 7 · 0⤊ 0⤋
You can but you usually have to pay a very high tax on it! You would have to contact the company that services the 401K to get the withdrawal forms, etc.
2007-12-04 12:57:37 · answer #4 · answered by Ed 3 · 0⤊ 0⤋
If you pull it out, you'll pay a 10% penalty plus taxes on it - so you'll net about 60-65% of the total amount.
2007-12-04 14:46:44 · answer #5 · answered by npk 7 · 0⤊ 0⤋