I am 62 and my 401k is not making me any money, now what is the fee for distribution? 20%? Now do I have to pay taxes on this money again when tax time comes in April, or does this 20% cover these taxes? Any info please {e-mail removed} thanks why at age 62 should have to pay 20% fee.

First, if your 401K is not making any money can you change investment options? Second, are you still employed by the company that manages the 401(k)?

You will not be charged a penalty for withdrawing your money since you are over 62. But you are a bit confused. The penalty is 10%. Generally 20% is withheld towards your tax liability.

If the plan does not offer other investment options, then you can roll over the distribution into an IRA and manage the investments yourself, thereby avoiding any tax liability.

I will agree, I make about 15 percent on mine, so your investments are just not properly done if you are not making money. ( of course done wrong you can even love money)

The 20 percent is just estimated tax, you still claim the money on your taxes, but you also show the 20 percent as payment toward the taxes. So if you owe money taxes you pay, if that was too much, it is refund.

And also as Scott asked are you still working ?

Yes I am still working, in the last 3 months I lost $175.00. So, I am at the point just take the money and run. Thought about the roll over but my money is still under $10,000. So the point is, I work part time , no matter when I take this money out, the first 20% goes to taxes, hopefully to cover the tax come January to pay April 15th deadline. Any info, thought about saving bond so in 7 years it should double, but then again taxes on that as well, any info on these bonds would be appreciated thanks

You didn't answer whether you have any investment options available besides the one currently invested in. You can roll it over no matter what the amount is.

Also, if you are still employed, they may not let you take a distribution, depends on plan rules.

Bobbarb - I don't know what bonds you think you can get that will double your money in 7 years - that would be equivalent to getting a 10% interest rate. Savings Bonds today pay only about 1.1%, and at that rate it takes about 50 years to double your investment. The interest on savings bonds is considered ordinary income, so you pay income tax on the interest depending on your tax bracket. On the plus side: the tax bill is deferred until you cash the bond in.

I thought the E bond if say, buy and pay $50.00 at time of purchase in 7 years , I thought , would double to $100.00, I bought some of them for my grandson, it says value $100.00 at time of duration 7 years

Savings Bonds are a bit strange in that you pay half the face value, as you noted. But the time it takes to reach face value is dependent on the rate, which changes every 6 months. So having bought a $100 bond for $50 it may take many years before you can actually trade it in for $100.