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johnsae
Sip.
Member since 3/06 18677 total posts
Name:
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Question about my 401 K that is sitting at my old job...
I am currently at a temp job that is a few months long. I am 5 weeks pregnant, so I will finish up this temp job and then I won't work...probably forever.
I have a sizable 401K "hanging out" at my last job in NYC. I want to take that money and transfer it into our savings account....can I do this without major penalties? What do you ladies suggest?
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Posted 10/26/06 2:24 PM  |
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Long Island Weddings
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
I don't think you can transfer that $ into a savings acct. it doesn't mature until you're in your 60's. you can however roll it over into your own IRA.
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| Posted 10/26/06 2:25 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Question about my 401 K that is sitting at my old job...
you definitely can NOT xfer it into savings.
you can put it into another 401k or an IRA.
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| Posted 10/26/06 2:26 PM |
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Anniegrl
I'm two!
Member since 5/05 4320 total posts
Name:
Ann
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Re: Question about my 401 K that is sitting at my old job...
I don't think you can do that. You can only withdraw it for things like putting down money on a house, or things like that.
You can roll it over into your current 401k though.
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| Posted 10/26/06 2:26 PM |
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jozieb0925
Double Trouble!
Member since 5/05 4358 total posts
Name:
Josie
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Re: Question about my 401 K that is sitting at my old job...
Posted by SweetestOfPeas
you can however roll it over into your own IRA.
that's what I did..
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| Posted 10/26/06 2:27 PM |
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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: Question about my 401 K that is sitting at my old job...
I believe they will let you take your 401k from an old job - but you'll face a 20% tax penalty off the bat and that amount that you're taking will count as part of your income for the year. So it may put you in a different tax bracket and affect you at the end of the year.
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| Posted 10/26/06 2:27 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Question about my 401 K that is sitting at my old job...
No, you would have to (1) pay taxes, and (2) pay penalties for reaching into the account before vesting. You could roll it into an IRA account, but same rules hold - you would incur penalties and taxes if you took the money out of the IRA.
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| Posted 10/26/06 2:27 PM |
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Selden78
I lvoe the fall :)
Member since 6/06 3543 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
I would go with the roll over
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| Posted 10/26/06 2:27 PM |
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johnsae
Sip.
Member since 3/06 18677 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
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| Posted 10/26/06 2:28 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Question about my 401 K that is sitting at my old job...
I have a roll over account at citibank- it was very easy to set up and it's still making money
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| Posted 10/26/06 2:28 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Question about my 401 K that is sitting at my old job...
Posted by johnsae
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
I would roll it into an IRA where you can manage the investments - I have an IRA account with Ameritrade.
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| Posted 10/26/06 2:28 PM |
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johnsae
Sip.
Member since 3/06 18677 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
Posted by jozieb0925
Posted by SweetestOfPeas
you can however roll it over into your own IRA.
that's what I did..
So, an IRA is like a personal retirement account? Sorry, but I'm clueless. So I would have to open an IRA and then transfer the money over?
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| Posted 10/26/06 2:29 PM |
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johnsae
Sip.
Member since 3/06 18677 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
Posted by Bxgell2
Posted by johnsae
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
I would roll it into an IRA where you can manage the investments - I have an IRA account with Ameritrade.
Great, thanks. I am familiar with Ameritrade...I will check into it. 
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| Posted 10/26/06 2:29 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Question about my 401 K that is sitting at my old job...
Posted by johnsae
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
then open an IRA with the 401k $$ -
but have the BANK do it - dont request a withdrawal yourself and then deposit it - it will look like a withdrawal and you will get penalized - the check of the 401k balance will have to be written out to the bank, for the benefit of (your name)
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| Posted 10/26/06 2:30 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Question about my 401 K that is sitting at my old job...
Roll it to an IRA. You will not incur any penalties tht way. Find a good financial manager and start allocating it once it's transferred.
You can contribute to it in the future as well if you decide to go back to work one day.
You can not treat this money like a savings account. If you withdraw it, you will incur steep penalties.
By the way, congrats!!!
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| Posted 10/26/06 2:30 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Question about my 401 K that is sitting at my old job...
Posted by Meaghan729
Posted by johnsae
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
then open an IRA with the 401k $$ -
but have the BANK do it - dont request a withdrawal yourself and then deposit it - it will look like a withdrawal and you will get penalized - the check of the 401k balance will have to be written out to the bank, for the benefit of (your name)
You will have to do it yourself. Make sure the the check be made payable to another financial institution. This way it is going into an IRA acct on your behalf. You will have to open an IRA somewhere before you can request a distribution.
Get a distribution form from the financial institution and they will probably ask you to complete it with all of your personal information including where the money is going and some require it be notarized.
Once you get the check, send it to your financial advisor to be deposited into your new acct.
Message edited 10/26/2006 2:35:19 PM.
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| Posted 10/26/06 2:34 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Question about my 401 K that is sitting at my old job...
Posted by johnsae
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
Roll it over into an IRA-my DH's best friend is a financial planner FM me if you want his info-he'll explain it to you.
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| Posted 10/26/06 2:37 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Question about my 401 K that is sitting at my old job...
Alicia, you can start withdrawing money from your IRA without penalty when you are 59 1/2. If you leave it there and don't touch it, when you are 70 1/2 you will have to start taking 10% each year.
The whole idea of it is that you have put that money away tax deferred and by the time you are ready to draw on it your tax bracket will be much lower than it is now.
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| Posted 10/26/06 2:40 PM |
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johnsae
Sip.
Member since 3/06 18677 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
Posted by Blu-ize
Alicia, you can start withdrawing money from your IRA without penalty when you are 59 1/2. If you leave it there and don't touch it, when you are 70 1/2 you will have to start taking 10% each year.
The whole idea of it is that you have put that money away tax deferred and by the time you are ready to draw on it your tax bracket will be much lower than it is now.
How do you know so much about this stuff? Do you work in the industry? I am such a dumb azz when it comes to this...
Anyway, thanks for spelling all this out for me. It really helps. DH is hiring a financial planner anyway....so he should be able to help me with this, right?
eta: i just realized i used the word "this" like 80 times in that sentence 
Message edited 10/26/2006 2:45:00 PM.
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| Posted 10/26/06 2:44 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Question about my 401 K that is sitting at my old job...
Posted by johnsae
Posted by Blu-ize
Alicia, you can start withdrawing money from your IRA without penalty when you are 59 1/2. If you leave it there and don't touch it, when you are 70 1/2 you will have to start taking 10% each year.
The whole idea of it is that you have put that money away tax deferred and by the time you are ready to draw on it your tax bracket will be much lower than it is now.
How do you know so much about this stuff? Do you work in the industry? I am such a dumb azz when it comes to this...
Anyway, thanks for spelling all this out for me. It really helps. DH is hiring a financial planner anyway....so he should be able to help me with this, right?
eta: i just realized i used the word "this" like 80 times in that sentence
Two reasons: I used to do this for a living (yuck) and I just did the same exact thing with my financial guy so I went through rolling 3 401(k)s into an IRA.
You're not a dumb azz!!! 
Good that DH is hiring someone. That's great, I have one I trust completely and so far so good. He/she will help you with all of that. If you have any questions that you think I could answer, please let me know.
I didn't know you were preggers! Did you announce it and I was oblivious?
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| Posted 10/26/06 4:40 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: Question about my 401 K that is sitting at my old job...
Posted by Meaghan729
Posted by johnsae
I do not have a current 401k and I will never again have another 401k. So, what do I do with this money? I need to put it somewhere....
then open an IRA with the 401k $$ -
but have the BANK do it - dont request a withdrawal yourself and then deposit it - it will look like a withdrawal and you will get penalized - the check of the 401k balance will have to be written out to the bank, for the benefit of (your name)
I agree, roll it over to an IRA with your bank.
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| Posted 10/26/06 4:48 PM |
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