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Rolling over my 401K into an IRA

SentrySentry Registered User regular
edited October 2008 in Help / Advice Forum
Hey everyone! I am in the middle of a job search and am presently sans any kind of income. I need to

A) roll over my 401k into an IRA
B) be able to withdraw from said IRA

Now, I've contacted everyone I need to... what I need to know is if there is a difference between getting a Roth IRA or a Traditional IRA for the purpose of withdrawing from it.

Any help would be appreciated. Thanks!

[SIGPIC][/SIGPIC]
wrote:
When I was a little kid, I always pretended I was the hero,' Skip said.
'Fuck yeah, me too. What little kid ever pretended to be part of the lynch-mob?'
Sentry on

Posts

  • ShogunShogun Hair long; money long; me and broke wizards we don't get along Registered User regular
    edited October 2008
    Regardless of whether or not you choose a Roth or Traditional IRA you cannot withdraw from it as you please. You must be at least 59.5 before you can withdraw without penalty.

    There are only seven ways to get that money before reaching the required age without penalty:

    1. Permanent Disability of IRA Owner
    2. Death of IRA Owner
    3. Withdrawals made to pay non-reimbursed medical expenses
    4. Withdrawals made for first home purchase
    5. Higher education costs
    6. Withdrawals for paying the IRS
    7. Withdrawals to pay medical or insurance premiums

    Shogun on
  • SentrySentry Registered User regular
    edited October 2008
    you're my hero. got a recommendation?

    Sentry on
    [SIGPIC][/SIGPIC]
    wrote:
    When I was a little kid, I always pretended I was the hero,' Skip said.
    'Fuck yeah, me too. What little kid ever pretended to be part of the lynch-mob?'
  • ShogunShogun Hair long; money long; me and broke wizards we don't get along Registered User regular
    edited October 2008
    Roth IRA

    Shogun on
  • SentrySentry Registered User regular
    edited October 2008
    Thanks Sho. Mods can lock now.

    Sentry on
    [SIGPIC][/SIGPIC]
    wrote:
    When I was a little kid, I always pretended I was the hero,' Skip said.
    'Fuck yeah, me too. What little kid ever pretended to be part of the lynch-mob?'
  • ShogunShogun Hair long; money long; me and broke wizards we don't get along Registered User regular
    edited October 2008
    I'm just curious are you planning on withdrawing money and taking the hit on the 10% distribution penalty?

    Shogun on
  • SentrySentry Registered User regular
    edited October 2008
    Shogun wrote: »
    I'm just curious are you planning on withdrawing money and taking the hit on the 10% distribution penalty?

    yeah... kinda have to. I'm out of options. I left my job just as the freaking economy collapsed... kinda fucked myself.

    Sentry on
    [SIGPIC][/SIGPIC]
    wrote:
    When I was a little kid, I always pretended I was the hero,' Skip said.
    'Fuck yeah, me too. What little kid ever pretended to be part of the lynch-mob?'
  • ShogunShogun Hair long; money long; me and broke wizards we don't get along Registered User regular
    edited October 2008
    Well if you plan on withdrawing the money there is no point in putting it into a IRA. Regardless of what IRA you put the money into you will pay income taxes on it. If the traditional you'll pay taxes on it when you withdraw it early + the 10% penalty fee. If you put it in the Roth you will pay taxes on it when you put it in and then the 10% penalty fee when you make your withdrawal. Also I'm not sure if you can roll your money over and then immediately withdraw it.

    Your best bet is to get your check from your 401(k), pay taxes on it, and go from there.

    Shogun on
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