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icebrevey2 · Feb 3, 2008, 07:02 AM

I was just let go of my job after 10 years of service. My question is can I cash in my 401 K in full without paying any penalties for early withdrawl? I do not plan on rolling it over. I am 57 years old. I do know that I will have to pay taxes on it as it will be added too my annual income.

Thank you

talaniman · Feb 3, 2008, 07:20 AM

You only have 2 and a half years to wait to get the whole thing, as it is now you pay a tax on the money, and a penalty, and that can add as much a 30% or more, depending on the amount of taxes you are obligated to pay. Roll it over, or leave it a while longer.

ebaines · Feb 8, 2008, 02:18 PM

You will NOT have to pay the penalty - if you separate service from your employer in the year you reach age 55 or later, your withdrawal from your ex-employer's 401(k) plan can be made without penalty. This only applies to your 401(k) - if you make a withdrawal from an IRA you would owe the 10% penalty.

talaniman · Feb 8, 2008, 02:36 PM

No penalty is due if separation from service is at age 55 or older.

That may be true with some, but mine specifies 59 and a half. I should have stipulated he should talk to his plan provider for the exact terms of his 401k. My bad.

xphelper · Feb 15, 2008, 06:12 PM

Originally Posted by icebrevey2

I was just let go of my job after 10 years of service. My question is can I cash in my 401 K in full without paying any penalties for early withdrawl? I do not plan on rolling it over. I am 57 years old. i do know that I will have to pay taxes on it as it will be added too my annual income.

Thank you

If you were involuntarily terminated by your employer at age 55 or older, you may start penalty-free withdrawals from your 401k with that company.