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I want to withwrall my money wats the procedure?

i just changed jobs and want to withwrall

Apr 23, 2012 by Jose from Houston, TX in  |  Flag
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Hi - Are you asking about a 401k account? Assuming you are, you can withdraw your funds if you no longer work at the sponsoring employer. BUT - it is probably a bad idea. The amount of funds withdrawn will be taxable as ordinary income - i.e., it will be taxed just like wages or salary, and you will pay a 10% penalty tax in addition to the income taxes unless you qualify for one of the exceptions. Leaving an employer is not one of the exceptions. What you SHOULD do is a direct transfer to a Rollover IRA account which you can set up at any number of brokerage companies, banks, credit unions or insurance companies. A direct transfer of the funds avoids both income taxes and the penalty tax and preserves your funds for your future. Regardless of the choice you make, you need to contact the company that runs the plan to take any action. Good luck!

Comment   |  Flag   |  Apr 24, 2012 from Redmond, WA

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