Money Matters

Re: 401k Distribution Question

Stephiehun — Thu, 02 Jul 2009 13:31:31 GMT

Thanks! I'll look closely at the paperwork and see what I need to do to roll it over.

Re: 401k Distribution Question

augs06 — Thu, 02 Jul 2009 13:25:43 GMT

kris216:
Paying a withdrawal penalty is never a good idea. Roll it into an IRA and cut your spending to help pay off the CC debt. If the CC is only a couple thousand, it shouldn't take long.

This.

Re: 401k Distribution Question

SCM1011 — Thu, 02 Jul 2009 13:19:22 GMT

definitely roll it over

Re: 401k Distribution Question

cittycat — Thu, 02 Jul 2009 13:18:00 GMT

I don't really know all that much, but I would just roll it over. I wouldn't want to take the tax hit. Plus it'd be nice to have some money in your new IRA, esp if this is your only retirement savings so far.

Re: 401k Distribution Question

kris216 — Thu, 02 Jul 2009 13:17:58 GMT

Paying a withdrawal penalty is never a good idea. Roll it into an IRA and cut your spending to help pay off the CC debt. If the CC is only a couple thousand, it shouldn't take long.

Re: 401k Distribution Question

rdcrlyhr — Thu, 02 Jul 2009 13:16:51 GMT

Don't take the lump sum distribution - it's never a good idea. Roll the money over into an IRA.

401k Distribution Question

Stephiehun — Thu, 02 Jul 2009 13:15:20 GMT

My company was recently "sold" for lack of a better term to another. I just got a notice about what to do with my 401k - it's only about $3500. (Yes, I'm bulking up the new one.)

I can either roll that into an IRA with my old company or take it in a lump sum distribution. Any input? It looks like I'd take a 20% and 10% deduction for the distribution. I was thinking about doing that and paying off a credit card, which would be a huge help to us. $3500 isn't that much in the grand scheme of things for retirement (I'm only 29), and I can increase my contributions with my new company.

I will probably talk to a CPA friend as well, but I always appreciate this board's input.