My 401k Rollover Guide give you expert help to play your rollover from 401k...
 

 

 

 

 

 
Home 401k Rollover Rollover Options Glossary FAQ
Take the money out in cash:
This is not a wise option for most investors. Taking out the money pre-maturely (before age 59½) results in serious tax consequences. Your previous employer is required to withhold 20% of your cash for federal taxes. The withheld 20% is used to pay the taxes you owe for your federal taxes; however, you might have to, depending on your tax bracket, pay more than 20% when you do your taxes for the year you withdrew.
Advantages with this option:
1.
 You can get immediate access to your money.
2.
 You can use the money for other purposes (for example, paying off expenses or investing in other options).
Disadvantages with this option:
1.
 20% of your money will be withheld for federal taxes.
2.
 Additional 10% penalty for early termination will apply if you are under 59 ½ years.
Copyright © 2005 My 401k Rollover Guide
  Web Design by Web Marketing, Quote Engine and Sales and Marketing SolutionProvider
Contact Us Home