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My husband is no longer employed but he needs to cash out his 401k?

Mar 31, 2016 by ramon in  |  Flag
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Hi Ramon, the easiest way to get the funds you are looking for is to have your husband call the HR department of the old company he worked for. If you would like to roll the funds into an IRA for your future retirement, than they can tell you the steps. If you need the cash now, they will walk you through how to distribute the funds. However, please remember that you will be hit with income taxes on this money if you take it now and there is a 10% penalty if you are under 59 1/2. Good luck!

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Labarron Level 1

Ramon, I want to give you a recommendation if I may. Your husband has an old 401(k) and he may not need to completely cash out the entire account. I recommend that you assess your need outside of the account and assess also your current household income and expenses as well. If you can reduce some of your overall outgoing funds and reallocate them to handle the situation then there will be less of an impact on the account and your retirement in general. Once that has been done then as minimal as possible can be deducted from the asset and the remainder can be rolled into an IRA as well as starting a monthly contribution into the IRA so he can begin to recoup some of the lost time and lost value of the retirement plan.

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