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I worked for stinker station and I would like to know how to cash out my 401k plan with them?

Apr 21, 2016 by gayle in  |  Flag
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Not sure what a "stinker station" means - I'm going to assume it's a former employer which you weren't terribly happy with.

Not to worry. If you have a 401k plan with a former employer, you have a variety of options including the following:

  1. You may be able to leave the assets there -- which is only sometimes a good idea. Normally, it's only good idea if (a) the plan itself is excellent -- low cost funds, no administrative fees, a good plan administrator you don't mind working with; and (b) you trust you'll always be able to deal with and get in contact with that former employer.

  2. You may roll the assets into your current employer's plan. Similar guidelines should be applied - check if your current employer's plan accepts rollover money -- and if the funds and expenses and administration are all god.

  3. You may roll the money into an IRA (traditional or Roth). There are advantages -- you can invest in nearly anything you like, you have direct control over the assets, you may choose the custodian. There may be an impact, having done this, if you'd planned Roth conversions, but otherwise, it can be a great idea.

  4. You can actually cash out - meaning take a cash distribution. This will usually mean paying taxes and a penalty (or, if you're old enough, possibly just taxes). Unless you really need the money right now, this is usually not a great idea.

Comment   |  Flag   |  Apr 21, 2016 from Palo Alto, CA

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