If you cash it out you will pay a 10% penalty and have to pay income tax on the amount received. You can roll it over into another 401k account or into a IRA. Your local bank can help with this. Good Luck
NEVER cash out qualified money (trad 401k). Find an adviser, roll the 401k into an IRA.
no, keep it in the 401k, as a retirement savings for yourself and be sure it is invested in stock funds not bond funds. you will pay income tax (at least 15% plus 10% penalty) so its not good for you to lose your hard earned money. make it work for you tax free in the 401k
If you need the money, you are in a lower tax bracket at this time. Penalty (I believe) is 10% - and then whatever your tax bracket is (could be zero - especially next year when you have 0 income, husband's wages are still relatively low, and child gets you a $1,000 child tax credit. << and that goes double if you have another baby.)
so, you will NOT "lose lots." ... and you will have the extra money now. (and if you pay off 18% credit cards, or keep it in the bank to avoid monthly bank fees, that 10% penalty is easily offset).
Nope
Roll it over into IRA
Hubby can contribute to spousal IRA for you over next years
But even if he doesn't, this money can grow for your future
Check out IRS.gov spousal IRA
Great to max out 401/IRA contributions when in 20s as longer time to save and grow for retirement
Bad idea. Roll it over into an IRA and start contributing to it as a SAHM so that you have some sort of retirement plan.
" i am 26 years old and recently left my job, I don t intend to start a new one for at least 5 years if it all goes according to plan (stay at home mom). "
Can you work part time or go back school?
If you are not going to do anything formfive years then you are off to the wrong start within life. You need to grow up. Five years without a job plus not going to school will be harder for you to get back into the workforce. You will have only yourself to blame if you lack within life..
Best of luck
I would only do that, if you have a NEED for the money. House down-payment, major car repair, etc. Otherwise, have it increase in value, tax-free!
You can do that and pay the tax and penalty on it or you can roll it over into an IRA.
NO. Keep it in there. By the time you retire it will be 20K
