Liquidating 401

Where should I roll or transfer my 401k account to?

In this scenario, the placement of the retirement assets into the trust would be a “lump sum distribution” to the trust, meaning that the full value of the assets transferred would be taxed all at once – as ordinary income to the trust at the trust tax rate.DO NOT CASH IT OUT JUST BECAUSE YOU’RE NO LONGER AT THAT COMPANY! In this day and age, anything can happen to any corporation at any time.Leaving behind a 401k account out of complacency, negligence, or just downright laziness is a big mistake.Being aware of the 401K withdrawal rules can save you from making costly mistakes.A 401K withdrawal is different from a 401K loan, which has its own set of rules and restrictions.What if your former employer merges with someone else, changes platforms or even, gulp, goes bankrupt?

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