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Old 08-11-2011, 11:35 PM
BigTex BigTex is offline
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Join Date: Aug 2011
Posts: 2
Default 401 (K) question

Last Sept I was let go from my job & my 401K is still with Prudential. My questions are (1) Should I move it to something else, e.g., IRA (2) Should I cash in & if so, how much tax i'll be paying (3) Should I go through a professional to do all of this or I can handle it myself. Or Prudential can move it into IRA.
I thank you all in advance.
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Old 08-12-2011, 07:17 PM
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DavidBibby DavidBibby is offline
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Join Date: Jun 2010
Location: Palm Bay, FL
Posts: 415
Default Re: 401 (K) question

A 4th option is leaving it with Prudential... just because the company let you go doesn't mean you HAVE to do something with your 401(k). This statement of course depends on your company and how much is in your 401(k) right now. For example...some companies allow you to make everything stay put as long as you have more than $1500.00 in your 401(k).

If you cash out...you will have to pay at least a 10% penalty in tax withholding AND you have to claim all the cash as income on your next tax return.

You don't need a financial adviser to roll the 401(k) into an IRA, you can do that yourself.

Hope this helps..
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