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Employer Terminating 401k
#7407454
01/17/19 10:13 PM
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Joined: Jul 2012
Posts: 266
AdanV
OP
Bird Dog
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OP
Bird Dog
Joined: Jul 2012
Posts: 266 |
I just learned that my employer is terminating the 401k benefit. Funny thing is, they didn't tell me. Principal told me. Long story short, this company has far too much overhead and they're cutting what they can to stay afloat. Hence why we should be conservative during times of feast, for when times of famine come.
So I got about 50 days to make a decision.
What's yalls advice?
Is it better to just roll it into an IRA? Let it sit in the 401k? (I wont be able to contribute towards it anymore) Or cash out and deposit into my savings account (2% interest)?
This guy at my church is a rep for a Christian financial service. I haven't been able to get in contact with him yet.
God Bless Texas Arsenal: Savage Axis II - 30-06 Stoeger P350 - 12 Gauge Diamond Edge SB-1 - Compound Bow
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Re: Employer Terminating 401k
[Re: AdanV]
#7407477
01/17/19 10:23 PM
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Joined: Dec 2011
Posts: 1,938
gtrich94
Pro Tracker
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Pro Tracker
Joined: Dec 2011
Posts: 1,938 |
Don't cash it out. If I recall correctly, you'll pay a 10% penalty on the withdrawal then you also have to claim it as income on your taxes. So you could be looking at a 25% + hit on the funds.
Thanks, Rich
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Re: Employer Terminating 401k
[Re: gtrich94]
#7407485
01/17/19 10:27 PM
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Joined: Nov 2009
Posts: 91,416
bill oxner
THF Celebrity
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THF Celebrity
Joined: Nov 2009
Posts: 91,416 |
Don't cash it out. If I recall correctly, you'll pay a 10% penalty on the withdrawal then you also have to claim it as income on your taxes. So you could be looking at a 25% + hit on the funds. I concur. It will still preform.
Quail hunting is like walking into, and out of a beautiful painting all day long. Gene Hill
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Re: Employer Terminating 401k
[Re: AdanV]
#7407502
01/17/19 10:37 PM
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Joined: Aug 2009
Posts: 22,716
BigPig
THF Celebrity
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THF Celebrity
Joined: Aug 2009
Posts: 22,716 |
You can’t contribute or the employer won’t match?
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Re: Employer Terminating 401k
[Re: AdanV]
#7407512
01/17/19 10:41 PM
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Joined: Jun 2015
Posts: 5,942
Jgraider
THF Trophy Hunter
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THF Trophy Hunter
Joined: Jun 2015
Posts: 5,942 |
Roll it into a self directed IRA and control the money yourself. If you roll it directly into the IRA you will owe no tax.
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Re: Employer Terminating 401k
[Re: BigPig]
#7407522
01/17/19 10:46 PM
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Joined: Jul 2012
Posts: 266
AdanV
OP
Bird Dog
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OP
Bird Dog
Joined: Jul 2012
Posts: 266 |
You can’t contribute or the employer won’t match? I myself wont be able to add to it anymore. I'm not even sure if I'll be even allowed to stay on it after the deadline. It may be gone altogether. The 401k benefit was at one time serving about 60 employees. We're down to less than 10.
God Bless Texas Arsenal: Savage Axis II - 30-06 Stoeger P350 - 12 Gauge Diamond Edge SB-1 - Compound Bow
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Re: Employer Terminating 401k
[Re: AdanV]
#7407535
01/17/19 10:50 PM
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Joined: Oct 2011
Posts: 483
FroggerZack
Bird Dog
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Bird Dog
Joined: Oct 2011
Posts: 483 |
If they are not shutting the whole 401k program down but not matching your contributions. I would just contribute as much as you feel comfortable.
If they are shutting the whole program down you need to roll it over into another IRA to avoid tax consequences.
If you just take the money your gonna lose almost half to tax penalties.
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Re: Employer Terminating 401k
[Re: AdanV]
#7407550
01/17/19 11:01 PM
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Joined: Jul 2012
Posts: 266
AdanV
OP
Bird Dog
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OP
Bird Dog
Joined: Jul 2012
Posts: 266 |
God Bless Texas Arsenal: Savage Axis II - 30-06 Stoeger P350 - 12 Gauge Diamond Edge SB-1 - Compound Bow
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Re: Employer Terminating 401k
[Re: AdanV]
#7407631
01/18/19 12:41 AM
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Joined: Oct 2012
Posts: 29,650
Sneaky
THF Celebrity
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THF Celebrity
Joined: Oct 2012
Posts: 29,650 |
Sounds like oilfield work. I feel your pain.
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Re: Employer Terminating 401k
[Re: AdanV]
#7407639
01/18/19 12:47 AM
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Joined: Jan 2007
Posts: 15,530
reeltexan
THF Celebrity
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THF Celebrity
Joined: Jan 2007
Posts: 15,530 |
"If we ever forget that we are One Nation Under God, then we will be a nation gone under." Ronald Reagan
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Re: Employer Terminating 401k
[Re: Jgraider]
#7407647
01/18/19 12:56 AM
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Joined: Jan 2014
Posts: 12,768
Paluxy
THF Celebrity
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THF Celebrity
Joined: Jan 2014
Posts: 12,768 |
Roll it into a self directed IRA and control the money yourself. If you roll it directly into the IRA you will owe no tax.
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Re: Employer Terminating 401k
[Re: AdanV]
#7407661
01/18/19 01:09 AM
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Joined: Apr 2009
Posts: 4,975
jbd76266
Extreme Tracker
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Extreme Tracker
Joined: Apr 2009
Posts: 4,975 |
Roll it into a self directed IRA and control the money yourself. If you roll it directly into the IRA you will owe no tax. This..don't leave it, don't cash it out. Vanguard, Fidelity, Schwab...any of those will have great low cost fund choices and will gladly help you roll over
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Re: Employer Terminating 401k
[Re: AdanV]
#7407730
01/18/19 02:04 AM
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Joined: Feb 2012
Posts: 10,504
DQ Kid
THF Celebrity
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THF Celebrity
Joined: Feb 2012
Posts: 10,504 |
Roll it to a IRA rollover but keep in mind if you continue contributing to it once at rollover IRA it is considered "comingled funds" meaning funds from a 401K and funds you've self added to the IRA. Comingled funds are ineligible from being re-rolled to another 401K in future. If your intent is to never re-rolled into another employer's 401K, it's a non-issue, otherwise do not contribute more than the 401K funds rolled. I used to work with retirement plans at Fidelity Investments in the mid 90s and those were the rules and believe they may still be unless have changed.
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Re: Employer Terminating 401k
[Re: Jgraider]
#7407811
01/18/19 03:25 AM
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Joined: Dec 2011
Posts: 14,297
Ramsey
Pepe' Le Pew
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Pepe' Le Pew
Joined: Dec 2011
Posts: 14,297 |
Roll it into a self directed IRA and control the money yourself. If you roll it directly into the IRA you will owe no tax. . Bingo
Big Beckett!!
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Re: Employer Terminating 401k
[Re: AdanV]
#7407861
01/18/19 03:54 AM
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Joined: Jul 2006
Posts: 110,800
dogcatcher
THF Celebrity
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THF Celebrity
Joined: Jul 2006
Posts: 110,800 |
Make sure it is handled correctly, or you might land up with a big tax bill.
Combat Infantryman, the ultimate hunter where the prey shoots back. _____________"Illegitimus non carborundum est"_______________
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Re: Employer Terminating 401k
[Re: jbd76266]
#7407883
01/18/19 04:21 AM
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Joined: Nov 2011
Posts: 16,853
S.A. hunter
THF Celebrity
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THF Celebrity
Joined: Nov 2011
Posts: 16,853 |
Roll it into a self directed IRA and control the money yourself. If you roll it directly into the IRA you will owe no tax. This..don't leave it, don't cash it out. Vanguard, Fidelity, Schwab...any of those will have great low cost fund choices and will gladly help you roll over Yep
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Re: Employer Terminating 401k
[Re: bill oxner]
#7407884
01/18/19 04:22 AM
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Joined: Jan 2011
Posts: 65,534
SnakeWrangler
THF Celebrity
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THF Celebrity
Joined: Jan 2011
Posts: 65,534 |
Don't cash it out. If I recall correctly, you'll pay a 10% penalty on the withdrawal then you also have to claim it as income on your taxes. So you could be looking at a 25% + hit on the funds. I concur. It will still preform. Unemployment is extremely low....greener pastures plus this ^^^^^^^^^^^
I believe in science and I’m an insufferable [censored] Actually, BBC is pretty damn good "You Cannot Simultaneously Be Politically Correct And Intellectually Honest!"
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Re: Employer Terminating 401k
[Re: AdanV]
#7407900
01/18/19 04:54 AM
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Joined: Feb 2012
Posts: 9,737
Mickey Moose
THF Trophy Hunter
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THF Trophy Hunter
Joined: Feb 2012
Posts: 9,737 |
My botnet is bigger than yours.
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Re: Employer Terminating 401k
[Re: AdanV]
#7408093
01/18/19 03:13 PM
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Joined: Jun 2009
Posts: 4,972
Dry Fire
Extreme Tracker
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Extreme Tracker
Joined: Jun 2009
Posts: 4,972 |
When I was laid off three years ago, I rolled my 401k into a self directed one with Fidelity. Best thing I ever did. Fidelity has tons of investment options and lets you do your own stock trades for $4.95 a trade. My returns during the last three years has been excellent due to where I decided to invest.
coffee spelled backwards is eeffoc. I don't give eeffoc until I have my morning coffee.
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Re: Employer Terminating 401k
[Re: Dry Fire]
#7408130
01/18/19 03:50 PM
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Joined: Oct 2011
Posts: 528
fishfree
Tracker
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Tracker
Joined: Oct 2011
Posts: 528 |
When I was laid off three years ago, I rolled my 401k into a self directed one with Fidelity. Best thing I ever did. Fidelity has tons of investment options and lets you do your own stock trades for $4.95 a trade. My returns during the last three years has been excellent due to where I decided to invest. ^^^^ THIS , rollover to an IRA, pick a fund and contribute every payday (automatically if possible).
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Re: Employer Terminating 401k
[Re: AdanV]
#7408131
01/18/19 03:50 PM
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Joined: Nov 2011
Posts: 16,853
S.A. hunter
THF Celebrity
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THF Celebrity
Joined: Nov 2011
Posts: 16,853 |
Yep, my company 401k has done poorly last couple of years. 5% ain't gonna cut it, so it might be a blessing rolling it into a IRA. That way you have more control of your retirement.
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Re: Employer Terminating 401k
[Re: S.A. hunter]
#7408138
01/18/19 04:00 PM
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Joined: Jul 2013
Posts: 6,074
Wilhunt
THF Trophy Hunter
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THF Trophy Hunter
Joined: Jul 2013
Posts: 6,074 |
Roll it into a self directed IRA and control the money yourself. If you roll it directly into the IRA you will owe no tax. This..don't leave it, don't cash it out. Vanguard, Fidelity, Schwab...any of those will have great low cost fund choices and will gladly help you roll over Yep This and continue to contribute to the IRA account.
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Re: Employer Terminating 401k
[Re: AdanV]
#7408459
01/18/19 10:14 PM
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Joined: Jan 2013
Posts: 19,663
Pitchfork Predator
THF Celebrity
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THF Celebrity
Joined: Jan 2013
Posts: 19,663 |
Pm me if you would like some prudent advice.
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Re: Employer Terminating 401k
[Re: AdanV]
#7408515
01/18/19 11:50 PM
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Joined: Jan 2012
Posts: 2,249
DeRico
Mobius 1
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Mobius 1
Joined: Jan 2012
Posts: 2,249 |
I don’t think it’s been mentioned yet but you should definitely roll it over to an IRA.
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Re: Employer Terminating 401k
[Re: AdanV]
#7408539
01/19/19 12:19 AM
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Joined: Apr 2010
Posts: 1,089
jakebunch
Pro Tracker
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Pro Tracker
Joined: Apr 2010
Posts: 1,089 |
What to do with it is the first part. The second part is how to most profitably invest the funds so as to maximize your return. Most people who are not very knowledgable investors, and many think they are and are not, will greatly benefit from professional investment advice. My experience has been better with advisors who charge a fee as opposed to those who work on commissions from trades. There are some good ones on this forum.
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