I was laid off on December the first. I worked for Woodforest National Bank for 12 years and they are telling me I cannot get my 401K out. They said they are reorganizating and in March I can move 25% into mutual funds or stock but they will not give me a check so I can deposit into an IRA. I was laid off and am fully vested so of course I feel the funks in my 401K are mine and would like to put into an IRA. Can you help????? They won't disburse my 401K to me.
CM
of TX
@
Jan 15, 2009 17:06:00 PM
age 55
I just be lay of can I take my money now and not pay the 10% penalty.
Manuel
of MA
@
Jan 13, 2009 18:30:22 PM
@ Linda
That 60 days only applies if you have taken a lump some distribution from your 401k and you are in possession of the check (minus the 20% witholding). If you simply leave the money in your former employer's 401k plan, you can roll it over to a new employer plan or an IRA at a later time.
Carol
of FL
@
Jan 13, 2009 17:39:38 PM
401k
What happens to your 401k if you leave it there after the 60dys and decide to roll it later when you go back to work or into another investment program? I left mine at my previous employer a year ago and not planning to use it or anything. Thanks
Linda Epes
of NH
@
Jan 13, 2009 15:49:57 PM
Roll it over directly. If you decide to roll over your retirement account, it's a good idea to have your plan sponsor wire the money directly to the new financial custodian. Be aware that if you take your 401(k) in a lump sum, your employer will withhold 20 percent for income taxes in case you decide to cash out and keep the money. Generally, you have 60 days to move the money to another tax-deferred account. If you don't meet that deadline, Uncle Sam keeps the 20 percent, plus any additional amount you owe at tax time. And if you're under age 55, you'll also get hit with a 10 percent penalty.
CM of TX @ Jan 15, 2009 17:06:00 PM
Manuel of MA @ Jan 13, 2009 18:30:22 PM
Carol of FL @ Jan 13, 2009 17:39:38 PM
Linda Epes of NH @ Jan 13, 2009 15:49:57 PM
Philip Staros of NY @ Jan 13, 2009 14:28:24 PM
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