[W_T_F]

Can you cash out your 401k if the company you work for sold out to another company.
They are even changing 401k providers.The existing 401k providers are saying yes we can sending us the appropriate forms to fill out but our new employers are saying we are not allowed to do so.What is the correct answer?

[slowandeasy]

Hello W T F

You do know that cashing out a 401K will have
Tax consequences as well as early withdrawal penalites unless you are at retirement age

[ebaines]

If your old plan is being automatically rolled into the new company's plan, then you are probably not allowed to take a withdrawal since you are now an employee of the new company, and very few employers allow active employees to take withdrawals. The only exception would be if you need to make a withdrawal for one of the "hardship" reasons, which are:

1. Un-reimbursed medical expenses for you, your spouse, or dependents.
2. Purchase of an employee's principal residence.
3. Payment of college tuition and related educational costs such as room and board for the next 12 months for you, your spouse, dependents, or children who are no longer dependents.
4. Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence.
5. Funeral expenses
6. Repair of a primary residence.