Home › Forums › Financial Markets/Economics › Retirement funds: Rollover or cashout?
- This topic has 25 replies, 5 voices, and was last updated 15 years, 1 month ago by
moneymaker.
-
AuthorPosts
-
December 29, 2009 at 9:56 AM #16848December 29, 2009 at 10:52 AM #497591
ucodegen
ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.December 29, 2009 at 10:52 AM #498476ucodegen
ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.December 29, 2009 at 10:52 AM #498228ucodegen
ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.December 29, 2009 at 10:52 AM #498135ucodegen
ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.December 29, 2009 at 10:52 AM #497743ucodegen
ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.December 30, 2009 at 1:28 PM #498128LuckyInOC
ParticipantTH,
You also want to check if you are fully vested in your accounts with matching funds. If you roll-over your accounts you will not be able to roll-over your non-vested amounts from the company. I have a fidelity account that I am 3/4 vested (I was laid-off just before my 5th yr). Unfortunately, I am stuck until I retire or get hired by the company again(large company, small possibility).
Lucky In OC
December 30, 2009 at 1:28 PM #497975LuckyInOC
ParticipantTH,
You also want to check if you are fully vested in your accounts with matching funds. If you roll-over your accounts you will not be able to roll-over your non-vested amounts from the company. I have a fidelity account that I am 3/4 vested (I was laid-off just before my 5th yr). Unfortunately, I am stuck until I retire or get hired by the company again(large company, small possibility).
Lucky In OC
December 30, 2009 at 1:28 PM #498860LuckyInOC
ParticipantTH,
You also want to check if you are fully vested in your accounts with matching funds. If you roll-over your accounts you will not be able to roll-over your non-vested amounts from the company. I have a fidelity account that I am 3/4 vested (I was laid-off just before my 5th yr). Unfortunately, I am stuck until I retire or get hired by the company again(large company, small possibility).
Lucky In OC
December 30, 2009 at 1:28 PM #498612LuckyInOC
ParticipantTH,
You also want to check if you are fully vested in your accounts with matching funds. If you roll-over your accounts you will not be able to roll-over your non-vested amounts from the company. I have a fidelity account that I am 3/4 vested (I was laid-off just before my 5th yr). Unfortunately, I am stuck until I retire or get hired by the company again(large company, small possibility).
Lucky In OC
December 30, 2009 at 1:28 PM #498520LuckyInOC
ParticipantTH,
You also want to check if you are fully vested in your accounts with matching funds. If you roll-over your accounts you will not be able to roll-over your non-vested amounts from the company. I have a fidelity account that I am 3/4 vested (I was laid-off just before my 5th yr). Unfortunately, I am stuck until I retire or get hired by the company again(large company, small possibility).
Lucky In OC
December 30, 2009 at 6:18 PM #4980405yearwaiter
Participant[quote=ucodegen]Rolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.
[/quote]I want to know about this with detalis if anyone knows.I doubt we can do this without tax hit
December 30, 2009 at 6:18 PM #4989255yearwaiter
Participant[quote=ucodegen]Rolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.
[/quote]I want to know about this with detalis if anyone knows.I doubt we can do this without tax hit
December 30, 2009 at 6:18 PM #4986785yearwaiter
Participant[quote=ucodegen]Rolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.
[/quote]I want to know about this with detalis if anyone knows.I doubt we can do this without tax hit
December 30, 2009 at 6:18 PM #4985865yearwaiter
Participant[quote=ucodegen]Rolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.
[/quote]I want to know about this with detalis if anyone knows.I doubt we can do this without tax hit
-
AuthorPosts
- You must be logged in to reply to this topic.