5 Ways to Protect Your 401(k) if You're Laid Off

401 article

401 ARTICLE

RANDY SNYDER of KY @ Jun 25, 2009 17:44:04 PM

I disagree, take the money and run

Taxes are going to go up much more than a 10% penalty plus whatever interest you make from it. The interest will be taxed at a higher rate too.

It's better to take the money and diversify it into non-paper assets.

Bozo of GA @ Apr 11, 2009 19:43:33 PM

Maria

you can go to this site to see if they can help you out

http://www.pbgc.gov/media/key-resources-for-the-press/content/page14802.html

john of MA @ Feb 09, 2009 23:02:22 PM

withdrawal from 401K after 55 and before 59 1/2

You can find out more from this link

http://www.irs.gov/publications/p575/ar02.html#en_US_publink10004541

Additional exceptions for qualified retirement plans. The tax does not apply to distributions that are:

From a qualified retirement plan (other than an IRA) after your separation from service in or after the year you reached age 55 (age 50 for qualified public safety employees),

From a qualified retirement plan (other than an IRA) to an alternate payee under a qualified domestic relations order,

From a qualified retirement plan to the extent you have deductible medical expenses (medical expenses that exceed 7.5% of your adjusted gross income), whether or not you itemize your deductions for the year,

From an employer plan under a written election that provides a specific schedule for distribution of your entire interest if, as of March 1, 1986, you had separated from service and had begun receiving payments under the election,

From an employee stock ownership plan for dividends on employer securities held by the plan,

From a qualified retirement plan due to an IRS levy of the plan, or

From elective deferral accounts under 401(k) or 403(b) plans, or similar arrangements, that are qualified reservist distributions

john of MA @ Feb 09, 2009 22:24:19 PM

401K rolled into an annunity

I'm 66 years old. During my 15th year with my company (shortly before turning 65) I came down with a serious illness and was placed on disability while I was undergoing treatment. While I was in the hospital, my company laid me off and and within 6 months they had claimed bankruptcy. They asked that I transfer my 401K. I put it into a 7-year-annunity, however, since then, Ive heard an annunity is a bad investment. It made $10,000 in this last year (2008), however the interest rate will go down each year, but is guaranteed to never go below 3.5 percent or I can reinvest. I can take out 10 percent pear year without penalty if I need it. Can you explain why it was a bad investment? It's with Symetra and purchased through Washington Mutual.

Dee Nelson of CA @ Jan 29, 2009 01:11:59 AM

401K

ok... What if you work for a company and I want to roll over my 401K into an IRA. The company is saying we don't have the option to take it out and it keeps losing $$$$. So far I have lost over $8000.00. I understood that if an employee gets laid off and submits the paperwork to roll the funds over then they should cut a check at the request. They won't release the funds and it keeps losing money even though I'm no longer employed there. Why can't I get my 401K out before it gets to ZERO?????

Chuck of TX @ Jan 22, 2009 16:50:42 PM

I currently have a 401k in Merril Lynch and it has lost value. It is in a fundemental growth program. What should I switch it to for more diversity?

Goldie Hebb of @ Jan 22, 2009 12:49:45 PM

Maria

I worked for Blue Cross and Blue Shield for 11 year. I still have my statements from my 401k. I have not worked for them within the last 20 years. I have contact them about 10 years ago and ask them about my 401k and they tell me that they do not have record of me having a 401k. I am invested, And I will get a pension. I need help to find out what has happen to my 401k. please if you can direct me into the right direction I would truly appreciated it.

Maria Shears of MD @ Jan 22, 2009 09:12:27 AM