as i just lost my job due to needing time out for chemo, i really want the money i invested at my job out.
i know if i don't "roll " it into a regular/roth IRA i can lose money, right? sorry, i am no tax/investor pro at all...LOL.
is there any way to just let them charge me up the wahoo in taxes and let me have the little bit of money left? i have no job, no income coming in for me or my two kids (dad is a deadbeat). i have about 8 thousand in this account. could i get a couple thousand doing this?
and yes, i am aware how this destroys my savings for now, but RIGHT now is when i need to eat, feed my poor kids who can't eat here right now. not about waiting will retirement, cause i may very well be dead by then. really, this is my last true asset, which is a shame, i know.
so, anyone done this or knows how to do it or knows any sites on web i can checkout about doing it???
Jan 30, '07
Contact either your employer or the one who administers the 401K, starting first with your employer's human reserouce person. It's relatively common to cash out when you leave a job. It's your money and you can get it, providing you are williing to pay the taxes. I've had to do this myself during some tough times. I'm sorry for your trouble.
If you claim hardship perhaps they can speed up the process. Good luck.
Jan 30, '07
Tweety is right, contact your previous employer's HR dept to find out who you need to contact to make the arrangements. I have done this in a difficult situation in my own past, and you don't really get charged "up the wahoo in taxes." The way it worked for me was that I had to declare the money as income on my tax return that year (not a crisis, since I had very little other income at that point!
) and pay (only) a 10% Federal penalty/tax for the early withdrawal. So, I still ended up with nearly all
the cash after all was said and done. That was a few years ago, so I don't know if the rules/regs have changed since then -- but the administrator of your 401(k) program can tell you exactly.