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BouncyEgg t1_j6oqri6 wrote

Yes? Yes you are trying to spend the 401k money on stuff in the present?


OverCastle28 OP t1_j6oqv9l wrote

Yes on the present like bills and groceries.


BouncyEgg t1_j6orh0i wrote

> 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?


OverCastle28 OP t1_j6orufg wrote

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.


BouncyEgg t1_j6osnim wrote

> 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.


OverCastle28 OP t1_j6ou75w wrote

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?


BouncyEgg t1_j6oxc6o wrote

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.

  • Go to,,
  • Pick one of the above.
  • Click through to open a Rollover IRA (or Traditional IRA). Write down your account number.
  • Click through to transfer an external account. You will enter in your 401k information. An address will be supplied to you. KEEP THIS ADDRESS.
  • Go to your 401k.
  • Choose: A direct roll over
  • Provide the IRA account information that you just opened. Provide the IRA account number.
  • Provide the address for the 401k to mail the check. Sometimes the 401k mails the check to you and then you have to mail it to your IRA.

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.