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Politics : Politics for Pros- moderated
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To: kumar who wrote (116541)5/27/2005 7:59:47 AM
From: John Carragher  Read Replies (1) of 793782
 
you can pay 10% tax penalty for early withdrawal or you can take a loan against the 401k and pay it back without penalty.

tax penalty only applies to growth in 401k and company contributions. you can take out your contributions over the period without any penalty.... corporation may apply a penalty such as no contribution by you or matching from corp for six months or up to a year..

i also assume the above is dated since i haven't been in a 401k for ten years. I took everything out and put it in discount broker account. 401k has fees, and limited investments, not the place to keep your savings after retirement imo. Also if you want to set up some kind of withdrawal , or buy,sell programs they have strick rules.
Best turn over the money to money manager if you do not want to manage money or do it on your own.

If you roll over the 401k into an IRA in broker account you avoid any taxes on corp. contributions or growth in 401k plan. You can buy and sell stocks without reporting on federal income tax forms as not subject to tax. All money in ira is taxable as withdrawn unless you converted to a roth. then you paid taxes on it at the time you converted and now all withdrawals and growth are tax free. great system.401k certainly helped middle income workers gain some wealth imo
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