|
Post by commentator on May 18, 2011 7:44:00 GMT -5
I would much rather cash out my 401K than put it in another CD IRA. Cashing out your 401 would be an incredibly bad idea, particularly since there are many other options besides the bad arrangement you described in an earlier post. First, unless you are over age 59 1/2, the tax hit, including a 10% penalty, would be significant. \\Edited to add: Actually, you only have to be over age 55 if you are separating from service to avoid the 10% early withdrawal penalty. Income taxes would still have to be paid.\\ Second, you would be reducing your income in retirement years.
|
|
|
Post by commentator on May 18, 2011 7:47:17 GMT -5
Then, in the future, you can just add money to the IRA as you wish. Well, not exactly "as you wish." There are significant limitations/requirements for contributions to IRAs. The first is the necessity that the taxpayer have earned income.
|
|
Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
|
Post by Gardening Grandma on May 18, 2011 9:01:35 GMT -5
I can tell you that I recently moved our IRA accounts to Vanguard and they were great to deal with. We did pretty much everything over the phone. They walked me through each step. I find their website user friendly. That's just my own experience.
|
|
financialpeace
Familiar Member
Joined: May 17, 2011 16:10:54 GMT -5
Posts: 554
|
Post by financialpeace on May 18, 2011 10:06:36 GMT -5
Thanks for all the help and input. I am still looking at the different companies, but right now I am leaning toward Vanguard. The website seems very easy to use, and it looks like the customer service will be good. I will wait to open an account until I get my termination paperwork which should be a month to six weeks before my end date.
|
|
Wisconsin Beth
Distinguished Associate
No, we don't walk away. But when we're holding on to something precious, we run.
Joined: Dec 20, 2010 11:59:36 GMT -5
Posts: 30,626
|
Post by Wisconsin Beth on May 18, 2011 10:11:19 GMT -5
Thanks for all the help and input. I am still looking at the different companies, but right now I am leaning toward Vanguard. The website seems very easy to use, and it looks like the customer service will be good. I will wait to open an account until I get my termination paperwork which should be a month to six weeks before my end date. Thank you for this thread. My IRA is in a CD at my bank and matures in August. This year I'm ready to do something with it and this is the kick in the pants to start doing my research so I'm ready to roll come August.
|
|
Plain Old Petunia
Senior Member
bloom where you are planted
Joined: Dec 21, 2010 2:09:44 GMT -5
Posts: 4,840
|
Post by Plain Old Petunia on May 18, 2011 11:31:47 GMT -5
Good for you, Wisconsin Beth. You've been getting a lot of your ducks in a row lately. Good job.
|
|
Wisconsin Beth
Distinguished Associate
No, we don't walk away. But when we're holding on to something precious, we run.
Joined: Dec 20, 2010 11:59:36 GMT -5
Posts: 30,626
|
Post by Wisconsin Beth on May 18, 2011 11:54:11 GMT -5
Good for you, Wisconsin Beth. You've been getting a lot of your ducks in a row lately. Good job. Thanks Petunia. Well, we need to get these things lined up and done. And I'm finally coming out of the sleep deprivation that 2 kids 18 months apart brought. lol. Also, a coworker passed away suddenly last Labor Day weekend. I think he was 51, married with 2 teenager sons. He was a great guy but it really hit home that we NEED to take care of wills, insurance, the house, retirement/financial stuff. Because we don't know what life will bring.
|
|