How do I cash out my 401k?

[Eyeball Chambers]

I win either way I guess cause with the matched contributions and the growth I'll come out ahead.

Could I do the IRA thing and than cashout the IRA to avoid taxes?



Getbig please hell I want to travel to Dubai.

[FREAKgeek]

That big city in India is a getbigger's pilgrimage.

[rangerwil]

Get ready to loose A LOT of it if you arent the right age.

[Explorerspl]

Convert it to a traditional IRA then put amounts of it in a Roth IRA and wait 5 years

Example:
You have a million dollars you want over 20 years

Convert it all to a traditional IRA and put 50000 dollars to the Roth each year.

If you wait 5 years after the first deposit into the Roth then that first deposit is not subject to a early withdrawal penalty. Then the subsequent years are also not subject to a penalty and you draw 50k a year.

Or you can convert the whole million to a Roth IRA and be subject to a much higher tax bracket and wait 5 years to start pulling from it.

[Agnostic007]

as a retired male at 53 years of age... my advice is to seek the advice of a pro. Get big, and I risk going into the black book for saying this.. is not the ideal place to get   retirement/investment guidance, is not the  place I would go to seek advice. Background.. I'm a retired civil servant who did investing from day one into a 401k and turned it into a portfolio I could retire on with 6 figures. don't cash in your 401 k without seeking professional advice

[Eyeball Chambers]

Convert it to a traditional IRA then put amounts of it in a Roth IRA and wait 5 years

Example:
You have a million dollars you want over 20 years

Convert it all to a traditional IRA and put 50000 dollars to the Roth each year.

If you wait 5 years after the first deposit into the Roth then that first deposit is not subject to a early withdrawal penalty. Then the subsequent years are also not subject to a penalty and you draw 50k a year.

Or you can convert the whole million to a Roth IRA and be subject to a much higher tax bracket and wait 5 years to start pulling from it.

Thank you for breaking this down! Google won't get to the point

[Mr Anabolic]

I win either way I guess cause with the matched contributions and the growth I'll come out ahead.

Could I do the IRA thing and than cashout the IRA to avoid taxes?



Getbig please hell I want to travel to Dubai.

I agree with what Explorer said.

The worst thing about 401k's and IRA's is the government controls all of your money.  If you are below 59 1/2 Uncle Sam charges you a 10% withdraw penalty plus the taxes.  People should not participate in their employers 401k.  The employer contribution/match is the "bait" that draws people into these things.

Open/fund your own trading account and you'll control of ALL your money.  The commissions, fees and expenses are much cheaper than typical 401k fund fees.

[Eyeball Chambers]

I agree with what Explorer said.

The worst thing about 401k's and IRA's is the government controls all of your money.  If you are below 59 1/2 Uncle Sam charges you a 10% withdraw penalty plus the taxes.  People should not participate in their employers 401k.  The employer contribution/match is the "bait" that draws people into these things.

Open/fund your own trading account and you'll control of ALL your money.  The commissions, fees and expenses are much cheaper than typical 401k fund fees.

Yeah, but the employer match covers the withdraw penalty and than some so why not?

[Irongrip400]

Convert it to a traditional IRA then put amounts of it in a Roth IRA and wait 5 years

Example:
You have a million dollars you want over 20 years

Convert it all to a traditional IRA and put 50000 dollars to the Roth each year.

If you wait 5 years after the first deposit into the Roth then that first deposit is not subject to a early withdrawal penalty. Then the subsequent years are also not subject to a penalty and you draw 50k a year.

Or you can convert the whole million to a Roth IRA and be subject to a much higher tax bracket and wait 5 years to start pulling from it.

I thought $5,900 was the most you could put in a year?  Also, isn't the income cap $160,000? That part in itself would exclude even the poorest of getbiggers from doing so.

[Explorerspl]

I thought $5,900 was the most you could put in a year?  Also, isn't the income cap $160,000? That part in itself would exclude even the poorest of getbiggers from doing so.

It's a trustee or trustee to trustee transfer(if you are transferring a different plan provider). Not a contribution,

[residue]

I agree with what Explorer said.

The worst thing about 401k's and IRA's is the government controls all of your money.  If you are below 59 1/2 Uncle Sam charges you a 10% withdraw penalty plus the taxes.  People should not participate in their employers 401k.  The employer contribution/match is the "bait" that draws people into these things.

Open/fund your own trading account and you'll control of ALL your money.  The commissions, fees and expenses are much cheaper than typical 401k fund fees.

between the fa and the tpa you're paying a lot of unnecessary fees, more so if you just want to do a target date release or an asset allocation  model. people don't need anyone to manage your 401k its so simple.
reinvest your dividends and look at it once a year.

[Mr Anabolic]

between the fa and the tpa you're paying a lot of unnecessary fees, more so if you just want to do a target date release or an asset allocation  model. people don't need anyone to manage your 401k its so simple.
reinvest your dividends and look at it once a year.

If the person is not financially savvy and happy with average/standard returns, by all means get into a target date fund and let it ride.  The fees still add up though.  

Better peace of mind to control your own money.  5-10 individual dividend paying blue-chip stocks are best for these types of people.  No fund fee leakage either.

I've managed my own retirement fund for many years.  This is why I only work 3 days a week and will retire at 60 (or sooner).  Also, not having a wife and kids is one of the main roads to financial freedom.  

[13B-T]

If in dire need of the cash why not just do a 401K loan after you budget the trip to see expenses?