Question
Why rollover a 401k?
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13th Nov 2009 by Daniel Cross, ChFC
Rolling over a 401K is something you would want to do in the event your company cancels its retirement benefits or you leave that company to become self-employed (or unemployed). If a withdrawal is taken prior to turning 59 1/2, a 10% penalty tax is assessed in addition to normal income taxation. Rolling your 401K into an IRA or Roth IRA keeps those tax benefits intact.
Rolling over a 401K is something you would want to do in the event your company cancels its retirement benefits or you leave that company to become self-employed (or unemployed). If a withdrawal is taken prior to turning 59 1/2, a 10% penalty tax is assessed in addition to normal income taxation. Rolling your 401K into an IRA or Roth IRA keeps those tax benefits intact.
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20th Oct 2009 In Retirement
1 Answers | 103 Views
Subjects: 401k,
rollover 401k,