Ask Experts Questions for FREE Help !
Ask
    alloptions's Avatar
    alloptions Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 8, 2008, 02:49 PM
    401k withdrawl or roll-over, not much to work with anymore!
    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.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Nov 8, 2008, 04:30 PM

    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?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Nov 13, 2008, 09:34 AM
    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Roll into existing 401K [ 4 Answers ]

I have an existing traditional IRA. I am employed and have a 401K with my current employer. I will be 55 this next year and plan to take distribution of the cash in the account per IRA rules concerning distribution of 401k funds in the year you turn 55 or later. That year is fast approaching...

401K roll over [ 1 Answers ]

How long does it take a 401K roll over to show in your new plan. The check was sent to me FBO and I sent it directly to the new plan but when I access my account it does not show the roll over money.

Roll my 401k [ 1 Answers ]

I will retire in 2 months I want to roll my 401k over into the best instrument for monthly income to supplement my pension & social security how should I proceed

401K roll-over question [ 4 Answers ]

I requested that my 401k from my former employer be sent to my 401k at my new employer. The old 401k company mailed the check to me although I had given explicit instructions to send the check to the new 401k company. The check is made payable to "New 401k company FBO 'my name'. Can this...

401K - to roll or cash [ 1 Answers ]

When I received notification of my QDRO back in 2000 I chose to put it into a 401K with the option (so I thought) of receiving a monthly payment once I reached a certain age. But not being 100% sure, I called the Benefits Office earlier this week and found out that I can 'cash it in' or roll it...

View more questions Search