Transfer 401k to a seperate bank account? Bol. Possible?

[flyny]

Is this possible? Let's say you have 30k in your 401k acct after 3 years of working, is it possible to transfer this into a savings/investment type of account?

Are there penalties? If so, how bad?

 

[antidope]

You can roll your 401k into another qualified retirement account. If you want to manage it yourself you can roll it into an IRA. 

You should go find out if its a traditional 401k, Roth 401k, or if you have both.

I had both at my last firm, I rolled the traditional portion into my new 401k, and rolled the Roth portion into a Roth IRA and trade that myself.

That comes with zero penalties.

 

[Chopper]

If you just transfer to a general stock account, you'll pay income taxes on it, plus a 30% early withdraw penalty. 

Edit - That's right, it's 10% not 30%. 

 

[al audi]

Forget that

Cash out and hit my inbox........

 

[braj mahal]

Technically you can do whatever you want, it's your money. However, there are stipulations.

I'm gonna assume it's pre-tax, as most 401k plans are.
If you wanted to take the money and put in a a savings account, you would have to withdraw the money from the 410k. It's not a transfer. So if you are under the age of 59.5 it's a premature distribution. Which means, it can be subject to a 10% irs tax penalty on top of the taxes you owe on it.

As mentioned above, you can transfer it to an ira account. But if you are still working for the company it doesn't make sense to do that.

 

[All_$tar1997]

It's not worth it to cash out you lose a good 30%. Better off rolling over, they kill you when you file your taxes as well trust me I learned that this year. They count is as part of your yearly income.

 

[braj mahal]

If you just transfer to a general stock account, you'll pay income taxes on it, plus a 30% early withdraw penalty. 

Edit - That's right, it's 10% not 30%. 

Yea it's a 10% penalty. But you that's in addition to what you are gonna be taxed on it based on your tax bracket. So it's likely you'll owe more than that

 

[da hen]

This is not a good idea. If you REALLY need funds bad, just take out a 401k loan. You could borrow half your balance back in the day, I think the cap is now $50k.

The interest is paid back to yourself with minimal fees.

 

[captaincrown3]

agreed with borrowing from your 401k.

Meanwhile I just look at my portfolio and realized it took a nose dive. Like Watching money burn

 

[thekid973]

I had a 401k back in the day and got fired. Couldn't find another job with one to transfer the funds, and they sent me a check for less than half. Never again I'll save my own dough.

 

[superantigen]

I had a 401k back in the day and got fired. Couldn't find another job with one to transfer the funds, and they sent me a check for less than half. Never again I'll save my own dough.

They sent you a check with less than half because you didn't rollover?

Never heard of something like this. In fact, I'm pretty sure what your former company did was illegal. They can't draw out your 401k without your permission.



...

 

[capital sb]

I had a 401k back in the day and got fired. Couldn't find another job with one to transfer the funds, and they sent me a check for less than half. Never again I'll save my own dough.

Yes that sounds illegal. You need to look into that.

@FlyNY  Don't take out the money, take out the 401K loan.

 

[stillin729]

They sent you a check with less than half because you didn't rollover?

Never heard of something like this. In fact, I'm pretty sure what your former company did was illegal. They can't draw out your 401k without your permission.



...

I think he didn't get his match, some companies have a clause where you have to be there a certain amount of time or you lose the match

 

[nawghtyhare]

My girls mom just lost her job due to permanent disability
So they let her go
She decided to pull from her 401k
She's 60
She had only $37,000
She has no early withdrawal fee
But after fed and state taxes being taken out
She has only $25,000
It's a cold world
We tryna see what legally she can do cause they laid her off
She been on light duty for like 10 months or so
After hurting her shoulder
And not she can't lift more than 5 pounds
So she can't even get another job
Not to mention she's old
She feels bad cause she hates feeling stuck at home
Me and my girl thinking bout sending her on a vacation to clear her mind

 

[stillin729]

How is it possible to only have $37k?

She either couldn't have been there long, she contributed almost nothing or dipped into it before

 

[nawghtyhare]

How is it possible to only have $37k?

She either couldn't have been there long, she contributed almost nothing or dipped into it before

She been there since 2000 I believe
She's borrowed from it before twice that I know of
Not sure how much she had taken out of each check towards her 401k

 

[lazyj10]

Yes that sounds illegal. You need to look into that.

@FlyNY
 Don't take out the money, take out the 401K loan.

Could be the part that wasn't vested.

 

[capital sb]

Could be the part that wasn't vested.

That makes a lot of sense. I assumed when someone says how much is in their 401K they are talking about the vested balance.