Submitted by OverCastle28 t3_10q9r1m in personalfinance
I’m trying to take out my 401K since I never signed up for it and it’s asking for a IRA Account number. Where do I find that?
Submitted by OverCastle28 t3_10q9r1m in personalfinance
I’m trying to take out my 401K since I never signed up for it and it’s asking for a IRA Account number. Where do I find that?
I thought I did, I’m making an account right now on id.me.
I think you may be confusing IRS with IRA...
Id.me is not a brokerage. Id.me is a way to get identified online for government websites (among other places)
Then out of these options what am I even supposed to check for a cash out?
Trying to cash my 401K out since I never signed up for it. Which option do I do?
A lump sum cash distribution of my vested balance, less any income tax withholding. A direct rollover of my vested balance to an IRA or a qualified retirement plan. A direct roll over of a portion of my vested balance, with the remaining amount paid as a cash distribution, less any income tax withholding.
> A lump sum cash distribution of my vested balance, less any income tax withholding. A
This one. I'd seriously reconsider though unless you are in absolutely dire straits
So let’s say I go to a new job since the one I’m at is getting ready to remodel, can this 401K be transferred over now or is it too late since I got a letter in the mail saying if I do not request my distribution by March 8th, my account balance will be forced out of the plan?
You have until March 8 to roll it into an IRA or new 401k
Alright that’s gonna kinda screw me over, we’re not closing until April
Then open an IRA and roll it into that
What’s the website since I don’t have the correct one?
Any brokerage.
Fidelity, schwab, vanguard, wealthfront, betterment, m1 finance, TD ameritrade, Merril, etc.
Fidelity will probably be easiest.
You can get help at /r/fidelityinvestments
First option
Its asking for an IRA account number because you selected the second option
OP, you should talk to your plan administrator.
Based on your questions and comments, I don’t think you should navigate this on your own. Talking to a real person close to the situation would be worthwhile
I don’t even have a plan administrator lol
Yes you do
Ask HR
Of the old job that I know won’t answer or my new job? My issue is the job I’m at will be closing in a couple months for reconstruction.
Is your 401k through your new job or old job?
Old job
If they won’t answer, then I’d reach out to the help desk at brokerage where your 401k is
So let’s say I go to a new job since the one I’m at is getting ready to remodel, can this 401K be transferred over now or is it too late since I got a letter in the mail saying if I do not request my distribution by March 8th, my account balance will be forced out of the plan?
I’m not sure what you’re asking
Sounds like 401k balance is too low to be kept where it is now that your employment has been terminated.
If you do not roll those funds over into an IRA or 401k with your new employer by 5/8/2023, you will be issued a check for the balance and your account will be closed.
From there, you could deposit it into your bank and accept the taxes and penalties if that is what you wish
If you want the money sooner, you’ll have to fill out a distribution form with your brokerage and have the money withdrawn/direct deposited to your bank.
Again, a rep from the brokerage can answer all of these questions
I want to cash out my 401K since I need money for bills/groceries atm, but now I don’t know if I should cause of the penalties they take out
Yes, you will lose a proportionally significant amount in taxes and penalties
Also, my job I’m at is going to be closing for reconstruction around April, should I just fill out a distribution form then?
Your new job has nothing to do with your old 401k
So how would I roll it over so it’s saved when I get a new job then?
Are you trying to withdraw or rollover?
I was going to withdraw/cash out since I need the money but now everyone is saying it’s not worth it. I’m gonna have to roll over it since my job is closing in a couple months
Are you planning to roll it over and then withdraw when your job closes?
Is that possible? I have to ask my boss if they’re even doing 401K cause they took over in late December
Im going to be honest with you, what you’re saying doesn’t make any sense
What do you think rolling over has to do with your job closing?
Thats where you’re losing me
The job I’m at right now is going to be closing within a couple months. I don’t know if I should even have it rolled over to this because of that
So you rolled over your old 401k to a new 401k plan at your new job?
No, we don’t even have a 401K at the new one
Okay, then i still do not understand what you’re saying
I don’t think you’re using the term rollover correctly
I would contact a fidelity rep for assistance so they can talk you through all the terms and implications
I did, they told me to contact who has my 401K currently
You should do that then
But idk, honestly I’ll probably just have it rolled over and take it out when we close
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> I’m trying to take out my 401K
When you say "take out" are you attempting to cash out?
As in, you're trying to take the 401k money out to spend? Like on lobster, steak, clothes, cars, jewelry, etc?
Yes, the option I checked was the “A direct rollover of my vested balance to an IRA or a qualified retirement plan. (Unless that’s not it.)
Thats why its asking for an IRA account number. You told them you were rolling it into an IRA
Yes? Yes you are trying to spend the 401k money on stuff in the present?
Yes on the present like bills and groceries.
> Yes on the present like bills and groceries.
That's the problem. You're not performing a direct rollover. That's not the right option.
You should really really really reconsider proceeding with your plan.
Not only will you be paying ordinary income tax, you will also pay a 10% penalty.
It's like having $100 in your pocket and then choosing to light probably $30 on fire in order to spend $70.
Do you like lighting your own money on fire?
The problem was me even being on this when they never asked me too. I need money for bills and if I’m able to get this money then I’m taking it.
> I need money for bill
Friend... You do whatever you feel best.
But as an internet stranger who has no skin in your game, your highest yield for effort is likely going to be in evaluating your budget and examining your expenses.
Cash out your money if you please. It's yours to do with as you wish. I'm sorry you feel slighted that you have 401k contributions when you felt like you were never asked. It may be difficult to accept that it may be better to leave the money invested as it seems like emotions are involved.
Good luck to you.
So let’s say I go to a new job since the one I’m at is getting ready to remodel, can this 401K be transferred over now or is it too late since I got a letter in the mail saying if I do not request my distribution by March 8th, my account balance will be forced out of the plan?
You can roll the money to an IRA at a custodian of your choice.
Sounds like you need very concrete instructions. Assuming you are interested in doing the most financially efficient route, this would mean maintaining the tax advantaged status of the 401k money.
Call your IRA's 1800 phone number if you run into trouble or confusion or if you don't know what to do next. All of them have people who will sit on the phone with you and walk you through everything, step by step, click by click.
Why are you trying to cash out your 401k?
I need money for bills/groceries, I’m pretty sure since I’m now “terminated” from that job I lose the money?
It depends on if your employer was contributing and, if so, whether or not that money was vested before you left
The 401K is yours. You can roll it into another 401K with a new employer or into a personally managed IRA.
Just realize that if you cash it out there is an automatic 10% penalty and then it will be subject to income tax next year.
So should I do personally managed IRA then? We’re not closing by March
It's up to you. If you think you'll have a new job in the next few months, you can just wait and roll over.
I don’t think I will tbh. We’re not closing until April and I’d honeslty like to take some time off cause of my back
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Werewolfdad t1_j6oozza wrote
> Where do I find that?
In your IRA account
Do you have an IRA?