Im thinking of quitting my job, and i have a bit in my 401k, cant i use that to live on while i look for another?
2007-12-16 05:31:36 · 5 answers · asked by idontwanttosay 2 in Business & Finance ➔ Personal Finance
yes your 401 k does come to you after to fill out paper work to get it
I would roll it over or you will be taxed to death on it .
2007-12-16 05:35:09 · answer #1 · answered by gerry22122 4 · 0⤊ 0⤋
401ks are suppose to be long term investments for retirement. If you cash out your current 401k when you quit your job, you will have to pay the 10% penalty for early withdrawl, plus all the income taxes -- and you will be in a much higher tax bracket.
Here's an idea. Why not find a new job BEFORE you quit this one? Then you won't have to worry about living off your 401k till you find a new job. You can just roll it over.
2007-12-16 14:30:40 · answer #2 · answered by bdancer222 7 · 1⤊ 0⤋
Yes the funds of a 401k can be moved. How you do it is critical in retaining the funds. If you have the funds amount made out in your name and don't put it back in a new 401k within 60 days you are hit with a 10% penalty if under the age of 59.5 plus 20% withholding. Most companies will allow you to leave it with them although it isn't the best idea. If your new employment has a 401k with matching funds it is best to do a rollover to them. If they don't have a matching fund then find an investment firm and do a rollover to them. Remember that the 401k is not a savings account to save funds for items througout life. They are for retirement. Do a research on how many people are NOT near ready for retirement in terms of funds and you will see how important it is to leave the funds in an account working for your retirement. When you leave your company you will most likely get a detailed lettter outlining all of your options.
2007-12-16 13:44:59 · answer #3 · answered by jwhall60 2 · 0⤊ 0⤋
Yes u can cash in ur 401 k anytime u wish that is the way that goes, is u work invest the money in a 401k and cash it in when u want to like a bank account sort of..lol
2007-12-16 13:35:39 · answer #4 · answered by shortcaketx420 1 · 0⤊ 0⤋
get a new job BEFORE you quit...it's easier to find a job while you're young then when you're 65. Why destroy income meant for the age when it's most difficult to find work.
2007-12-19 12:19:17 · answer #5 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋