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Hi Ryan this is Randi-kay Bridgefarmer from KVH in Goldendale I'd like to cash out my retirement from the hospital. What do I need to do if anything? Thank you, Randi-kay?

Jul 09, 2012 by Randi-kay from Goldendale, WA in  |  Flag
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Hi Randi-kay, It depends on what type of retirement plan you have at the hospital. I processed a case recently for a Sr VP at Meridian Health Care Systems in NJ. This women had three plans she was participating in. 1] 403b 2] A Fixed annuity 3] A fixed pension Depending on which type of plan you have, the options and procedures for "cashing" them out are different. Review the effects of cashing them out versus rolling them over before you make any decision or take action. Good Luck, Dan

Comment   |  Flag   |  Jul 09, 2012 from Asbury Park, NJ

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Contact your company's plan administrator directly or try the human resources contact at your facility. You'll need to determine what types of plans that you have available because the rules may differ. If you are seeking to "cash out" then you'll receive the funds in your name. Remember that you may be liable for any taxes for a distribution.

Even if you are over age 59 1/2 bear in mind that taking all the money as a final distribution will count as income and impact your taxes. I had a tax client who did this without calling me first and he took his $105,000 401(k) balance out resulting in a very large income tax bill.

If you're rolling it over into another IRA account, you should set up that account and provide the account number along with any transfer paperwork that may be needed to your firm's administrator.

Comment   |  Flag   |  Jul 09, 2012 from Amesbury, MA

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