[polarbear1298]

Hi,

I wanted to know the specific process on how to cash out my 401K from my old place of employement. I haven't worked there for 10 years.

Who do I need to talk to? What forms do I need to fill out? I just need to know the right steps.

I realize I will endure penalties, but it doesn't bother me.

Thank you for your help!

Jh

{moved from Forum Help}

[ScottGem]

You like throwing away money? Why not just roll it over? But you will be throwing away 20% or more of the money that's in that account.

But the bottomline is you need to contact the plan administrator.

[ebaines]

If you roll the account over to a rollover IRA you can work through the new investment company to take care of everything - all you need do is submit the application for the rollover IRA along with a copy of one of your old 401(k) statements and they take care of the rest. Virtually all the major players can do this for you with minimal effort on your part - Vanguard, Fidelity, Schwab, T Rowe Price, etc etc. This way you keep your investment growing tax-deferred and pay no taxes or penalties.

As for taking the cash out - if you are under 59-1/2 you will pay both ordinary income tax and a 10% early withdrawal penalty. Plus you lose the future value of the investments compounding until you need the money in retirement. This should be a move of last resort.