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After leaving scot industries how long do I have to wait for my profit sharing check to be sent to me.

Nov 05, 2015 by trevor in  |  Flag
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Chris Schiffer Level 14

Trevor, Because the Internal Revenue Service views a profit-sharing plan as a qualified retirement plan, it allows a person to transfer funds from a profit-sharing account to an individual retirement account, or IRA. Typically, profit sharing plans are linked with a 401k plan. You should be able to do a rollover from your profit sharing plan to the 401k of your new employer or to an IRA. However, if Scot Industries has an especially good 401(k) plan where Scot Industries negotiated low investment fees on behalf of employees, you might want to leave the money in your old 401(k) plan. I wouldn't know unless I saw the details of the plan.

If you take a straight withdrawal by check before age 55 without rolling it over to an IRA within 90 days, you will generally have to pay income tax and a 10 percent early withdrawal penalty on the amount withdrawn.

1 Comment   |  Flag   |  Nov 22, 2015 from BASKING RIDGE, NJ
Chris Schiffer

I accidentally submitted before finishing my thought. Your may be able to withdraw at age 55 if you retired from Scott Industries, otherwise the cutoff for withdrawal without penalty is age 59 1/2. Again,I would have to know the details to give a more accurate answer. .

Flag |  Nov 22, 2015 near BASKING RIDGE, NJ

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