401(k) help needed

[Skywolf]

Hi everyone
I feel kind of stupid for asking this, but I have a 410(K) with a company I no longer work at. Its a teeny amount of money, but is money I really, REALLY, need right now. Can I get it out? How do I do this? I have researched it online but just get info about rolling it over to an IRA and similar stuff and am just more confused now. Any help would be appreciated, Thanks

Laura

[DukeCity]

Laura - There's a 10% penalty and then taxes will be usually taken out also at the time of withdrawal, so figure on netting roughly 65% of the gross amount.

[dallascowgirl]

You can just request the money from your old company. If you are younger that 59 1/2 there is a 10% penalty on it and you pay ordinary income tax on it.

[Skywolf]

So do I just contact my former employer and talk to them? (of course they are not there today) Or do I go through the financial institution thats listed on my statement (tried to do that online but their site keeps crashing my computer) Forgive my ignorance about this, its a little new to me, and thanks for your response.

laura

[Skywolf]

Sharon, oopps, we must have been posting at the same time.
Are there forms to fill out, red tape to wade through, or can it be transeferd directly to my bank account (did have direct deposit with this company)

[dallascowgirl]

When you contact your old company, they should send you the forms, you fill them out and submit then to your old company and they should act as your intermediary. If they are really slow or very reluctant, you can contact the company where your funds are invested and work through them.

[Skywolf]

Thanks,
I figured this wouldn't be an easy get it over with a phone call process, even though its MY money. :roll:

Laura

[dallascowgirl]

The forms are pretty simple and it shouldn't take them longer than a week to get them out to you. If after 2 phone calls and you get no reponse, go directly to the investment fund or company. Good Luck!!!!

[Brady Barrows]

When I quit one job about thirteen years ago I needed the money in my 401 K and it took about three to four months to get the funds which as sharon says is about 65% of the total money. The cool thing was my company had matched dollar for dollar so I got my money back and a little bit of the company matched money. Not many companies are matching dollar for dollar any more. If you can roll it over into another 401 K there is no penalty but you have to keep adding money to the fund to keep it active. I wish I had rolled it over thirteen years ago but like you I needed the money then.

[DukeCity]

Realistically it shouldn't take very long for you to recover your money -- I would think 10 to 14 days once they get your request..

[phlika29]

Is this 410K abit like a pension scheme?

[dallascowgirl]

The 401k has been taking the place of the company pension plan since the late '70's. The Federal law allows the employee to put up to 16% of their salary in ( 5,000 dollars more if you are over 55) and your company has the option to match that contribution up to 6 %. Some of the plans are quite well diversifed in different funds and some companies may only allow you to buy their stock and/or a few other funds. The employees of Enron and World Com learned the hard way and lost most of their retirement money when those companies stocks crashed. So it is best not to work and invest in the same company and if possible put the money in other funds if they are available.