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    fliperlip's Avatar
    fliperlip Posts: 1, Reputation: 1
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    #1

    May 11, 2007, 06:13 PM
    401k cashout
    My company has been bought out and the new one is not taking on us workers so I am going to cash out my 401k will I pay the early withdrawl pently I am 48
    malmatar's Avatar
    malmatar Posts: 7, Reputation: 1
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    #2

    May 11, 2007, 08:26 PM
    Yup, unless you roll it over.
    gogosean's Avatar
    gogosean Posts: 47, Reputation: 6
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    #3

    May 11, 2007, 08:31 PM
    Quote Originally Posted by fliperlip
    my company has been bought out and the new one is not taking on us workers so i am going to cash out my 401k will i pay the early withdrawl pently iam 48
    If you must liquidate, don't forget to roll it over to a deep discount broker. Depending on the assets, the savings could mean a lot more money.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    May 14, 2007, 09:19 AM
    Roll the money over into a rollover IRA.

    Do it using the custodian-to-custodian method (any brokerage firm will help you with the process).

    Otherwise, you will pay normal state and federal income taxes PLUS a 10% Early Withdrawal Penalty. The taxes could approach 50%.
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