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mellowtiggerI have never wanted a 401k stock market "retirement savings" account. Everywhere I worked during the last 20 years, though, has given me one even when I deliberately fail to sign the paperwork for it. Why are companies even allowed to do that instead of pay people higher salary if they simply opt out of it? I just now looked at the account I got from my last job (ended a few weeks ago).
HOLY MOLEY!
That's more money than I got in a whole year's salary, pre-tax. I could immediately pay off my house and still have lots of money left over for house repairs, assuming I got the full amount by cashing out now. Or save it all and wait out this pandemic a whole lot longer.
I might as well cash out. The dashboard says I've already lost $5K in value this year due to stock market drops, and I expect it to get worse this year. I just need to look up how much I'll pay in taxes and "early withdrawal" fees.
Anyone here familiar with this process and the penalties involved? I've already looked over the Fidelity website, but it doesn't get into specifics. I've created a new link today to my actual bank. Once that's confirmed, apparently I need to call Fidelity to begin the closure process, so money can be delivered to the bank.
Edit 2022 July 28: I did it. I withdrew the full amount, with the automatic deposit expected to complete on Tuesday next week. I'll post details of the numbers and why it makes sense to do it, after all of the money movement has completed.
HOLY MOLEY!
That's more money than I got in a whole year's salary, pre-tax. I could immediately pay off my house and still have lots of money left over for house repairs, assuming I got the full amount by cashing out now. Or save it all and wait out this pandemic a whole lot longer.
I might as well cash out. The dashboard says I've already lost $5K in value this year due to stock market drops, and I expect it to get worse this year. I just need to look up how much I'll pay in taxes and "early withdrawal" fees.
Anyone here familiar with this process and the penalties involved? I've already looked over the Fidelity website, but it doesn't get into specifics. I've created a new link today to my actual bank. Once that's confirmed, apparently I need to call Fidelity to begin the closure process, so money can be delivered to the bank.
Edit 2022 July 28: I did it. I withdrew the full amount, with the automatic deposit expected to complete on Tuesday next week. I'll post details of the numbers and why it makes sense to do it, after all of the money movement has completed.
no subject
Date: 2022-Jul-22, Friday 11:46 pm (UTC)Any form of cashing out can be pricey, there's a cash out fee from the servicer of your 401K, plus taxes, that sum can be anywhere anywhere from 15% to 24%. You'd need to contact the company for what it would cost.
I think if you lose or leave your job at age 55 or later, you won't have to pay the 10% penalty on withdrawals from the 401(k). It may differ from state to plan, though.
However, I'd suggest you talk to a professional money manager to make sure you're best being served by whatever you want to do. Internet advice is worth what you paid for it.