Leaving my job...

[RaistlinZ]

Does anyone know what happens to your 401k when you leave your job? Do I have acceses to the money I've put in and how much is it taxed? Thanks.

 

[MrBond]

You should be able to rollover the funds into another retirement account.

Company matched funds are different from place to place. You usually have to work a set number of years before you're fully "vested" and can take the money with you if you leave. If I would leave my job after only a year, I'll only get to take 20% of the money the company contributed. I think it's 5 years and I'm fully vested and can take all the money they contributed.

No matter how much I put in, that money is mine.

 

[FoBoT]

some companies will allow you to leave it there
most people roll it into a IRA
they should send you a letter explaining your options

 

[EagleKeeper]

If you have your company cut you a check (even if you will move the $$ elsewhere), you will get hit with a penalty fee. You never see the penalty - it gets taken off the top.

You can recover the fee by placing the funds + the penaltyinto another account and the file for the penalty reembursement on your taxes.

If you take the $$ and do not roll it over, yoiu are also liable for the full amount being considered taxable income.

So in theory, a person with a decent salary could lose 40-50% of the 401K after penalty, Federal and State taxes.

 

[bctbct]

check to see if your new employer allows you to roll it into a 401 otherwise open a new retirement account at a local bank. As CC said if you withdraw the money you lose 40-50%.

 

[RaistlinZ]

I was reading that you can take out money from a ROTH IRA at any time tax free. Can I roll over my 401(k) to a ROTH and then withdraw it from the ROTH?

 

[FoBoT]

no, you can't cheat the govt. out of its taxes

you roll a 401(K) which is a tax deferred acount into a traditional IRA , which is also a tax deferred account. then you'll pay tax on the money when you withdraw it from the IRA

 

[TangoJuliet]

edit: its called TSP (Thrift Savings Plan) http://www.tsp.gov/

edit2: found an answer to my own question here
http://community.federalsoup.c...514011031&m=8101068041

 

[OdiN]

They make a check out and send it to me, and I get all your money.

 

[PowerEngineer]

OP, you need to do some serious googling on this topic to make sure you understand your options and pick the one best suited to your situation. To get you started... Limk

Good luck!

 

[alrocky]

Originally posted by: RaistlinZ
I was reading that you can take out money from a ROTH IRA at any time tax free. Can I roll over my 401(k) to a ROTH and then withdraw it from the ROTH?

401(k) to IRA - tax deferred
IRA to ROTH IRA - taxes due

You don't want to convert this to a ROTH and you really shouldn't withdraw retirement money [401(k), IRA, ROTH IRA] except for retirement.

---
401(k) to TSP

alkohoLiK, some of that info was lifted without citation from the TSP site. And yes you should roll your 401(k) into the TSP.