It'll be close call if it puts us into the next tax bracket - still working on this with my husbands bonus he just received. Total income for us is approx. 130k, we live in MN. I have 2 previous companies 401k plans that we need to do something with, one has been cut in half since January, the value of this is 4900 and the other is 1300. Considering this is not much cash, and with the withdrawl will be significanyly less, I 'm on the fence of what to do. I need to make a decision soon. Suggestions? Ideas on how much I will be taxed when I go to do my taxes for '08 and approx. how much would I receive in cash with the approx. 30% in fees etc.

Roll them over, don't cash them out. Even if it doesn't move you into the next bracket, you'e already lost a significant portion why throw away more?

Agreed!

Cashing out ANY retirement plans early almost ALWAYS ends up a losing proposition because of the punitive taxes that are imposed.

The ONLY TIME takingmony out early makes sense is if life or limb are at risk, or you need the money to prevent home loss due to foreclosure.