Quick question re 401k rollover and cash out...

MrsBrady

(1000+ posts) Send PM | Profile | Ignore

Tue May-11-10 09:49 AM
Original message

Quick question re 401k rollover and cash out...

We don't want to, but may need to dip into the $.

I'm gonna roll over 401k into IRA.

Can I roll over now, and take out cash in a few months if
we need it?? Or am I sol and have to take some out when I roll over.
I know I can take it out at roll over, just don't want to yet.

Yes, I know...fees, tax, blah blah. That's not my question.
I'm getting some mixed info from a couple of different people, and
can't seem to find that answer on the Internet.

Printer Friendly | Permalink | | Top

HopeHoops

(1000+ posts) Send PM | Profile | Ignore

Tue May-11-10 10:22 AM
Response to Original message

1. I took a "loan" from my 401K once. Talk to the benefits administrator.

Unless the rules have changed, you can take a loan on the part of the 401K you paid into (not earned interest) and set up a payroll deduction to pay it back over time. That way you don't break the 401K, don't have to fuck with the IRS, and essentially don't damage the long-term value of the fund.

Printer Friendly | Permalink | | Top

MrsBrady

(1000+ posts) Send PM | Profile | Ignore

Tue May-11-10 12:37 PM
Response to Reply #1

2. Not employed any longer...

That's my point. Can't take a loan.

Printer Friendly | Permalink | | Top

HopeHoops

(1000+ posts) Send PM | Profile | Ignore

Wed May-12-10 09:55 AM
Response to Reply #2

3. Yeah, they probably want you to move the fund pretty quickly.

If you take a distribution, you have a while to put it into a different "qualified account". Talk to the bank about your options. If you put it in a ROTH, you still have to pay the taxes so liquidating part of it might not be as bad as you think. I'm pretty sure you can pop it into a traditional IRA without any tax or penalty implications.

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Thu May 09th 2024, 09:55 PM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.