EvilMonkey Posted July 23, 2007 Share Posted July 23, 2007 My wife quit her job last week (her last day being a payday Friday.) and now is trying to access her 401 K money. She called the 401K people this morning and she was told that they need authorization from her company that she no longer works for them. Her company said they automatically send that info out but it wouldn't be sent till August 3rd (the next payday). My thinking is that this is her money, she's earned it and even if she was still with the company and wanted to close the 401k she sould be able to right away not wait at least 2 weeks. I understand it isn't an instant thing and all but we were hoping to get the money (minus any penalty,taxes, etc.) to get her a car for her new job. Anyone know if her company is just being a pain in the ass or is that how the rules are set up. It just doesn't seem right to me but i wouldn't know where to check on them one way or the other. Any help is (as usual) appreciated. Quote Link to comment Share on other sites More sharing options...
kapkomet Posted July 23, 2007 Share Posted July 23, 2007 That's probably when the next notification goes out to the 401k people. They COULD do it earlier, but I'm not sure they are going to hurt themselves since she quit. That's pretty standard... Quote Link to comment Share on other sites More sharing options...
Steff Posted July 23, 2007 Share Posted July 23, 2007 QUOTE(Alpha Dog @ Jul 23, 2007 -> 10:42 AM) My wife quit her job last week (her last day being a payday Friday.) and now is trying to access her 401 K money. She called the 401K people this morning and she was told that they need authorization from her company that she no longer works for them. Her company said they automatically send that info out but it wouldn't be sent till August 3rd (the next payday). My thinking is that this is her money, she's earned it and even if she was still with the company and wanted to close the 401k she sould be able to right away not wait at least 2 weeks. I understand it isn't an instant thing and all but we were hoping to get the money (minus any penalty,taxes, etc.) to get her a car for her new job. Anyone know if her company is just being a pain in the ass or is that how the rules are set up. It just doesn't seem right to me but i wouldn't know where to check on them one way or the other. Any help is (as usual) appreciated. That's standard proceedure. Quote Link to comment Share on other sites More sharing options...
EvilMonkey Posted July 23, 2007 Author Share Posted July 23, 2007 That is also Juddling posting under my name! Check the screen first Juddling! Anyway, I had mentioned to him that the 'needing notice from the employer that she quit' is bull. She can withdraw the money even if she was still employed if she wanted to, albeit pay fees, etc. Quote Link to comment Share on other sites More sharing options...
Steff Posted July 23, 2007 Share Posted July 23, 2007 QUOTE(Alpha Dog @ Jul 23, 2007 -> 10:54 AM) That is also Juddling posting under my name! Check the screen first Juddling! Anyway, I had mentioned to him that the 'needing notice from the employer that she quit' is bull. She can withdraw the money even if she was still employed if she wanted to, albeit pay fees, etc. I don't know what kind of 401K you have dealt with, but in every one I have dealt with you can not remove funds without employer notification. For a loan or to close it. The employer manages the funds, not the 401K group. The only option the employee has that doesn't involve the employer is investment allocation. Quote Link to comment Share on other sites More sharing options...
Gregory Pratt Posted July 23, 2007 Share Posted July 23, 2007 Is Juddling married to Alpha, or something? Quote Link to comment Share on other sites More sharing options...
Steff Posted July 23, 2007 Share Posted July 23, 2007 QUOTE(Gregory Pratt @ Jul 23, 2007 -> 01:49 PM) Is Juddling married to Alpha, or something? IIRC, brothers. Quote Link to comment Share on other sites More sharing options...
RibbieRubarb Posted July 23, 2007 Share Posted July 23, 2007 QUOTE(Steff @ Jul 23, 2007 -> 02:54 PM) IIRC, brothers. or lovers.... Quote Link to comment Share on other sites More sharing options...
santo=dorf Posted July 24, 2007 Share Posted July 24, 2007 Really quick question, with my new position my company will match 6%. So I take it it is better to put money in my 401K instead of a savings account? I was thinking of putting $250-300 a week in my 401k. Quote Link to comment Share on other sites More sharing options...
RockRaines Posted July 24, 2007 Share Posted July 24, 2007 QUOTE(santo=dorf @ Jul 23, 2007 -> 07:41 PM) Really quick question, with my new position my company will match 6%. So I take it it is better to put money in my 401K instead of a savings account? I was thinking of putting $250-300 a week in my 401k. yes, put it in the 401k. If your company matches or contributes a percentage then its free money, and usually pre-tax Quote Link to comment Share on other sites More sharing options...
mr_genius Posted July 24, 2007 Share Posted July 24, 2007 QUOTE(santo=dorf @ Jul 23, 2007 -> 07:41 PM) Really quick question, with my new position my company will match 6%. So I take it it is better to put money in my 401K instead of a savings account? I was thinking of putting $250-300 a week in my 401k. definitely put it in the 401k Quote Link to comment Share on other sites More sharing options...
EvilMonkey Posted July 24, 2007 Author Share Posted July 24, 2007 QUOTE(Gregory Pratt @ Jul 23, 2007 -> 02:49 PM) Is Juddling married to Alpha, or something? Juddling and I are brothers, and he works for me. I often leave myself logged in on one of the computers, and he often forgets to check who is logged in before posting. Quote Link to comment Share on other sites More sharing options...
Soxy Posted July 24, 2007 Share Posted July 24, 2007 QUOTE(Alpha Dog @ Jul 23, 2007 -> 10:56 PM) Juddling and I are brothers, and he works for me. I often leave myself logged in on one of the computers, and he often forgets to check who is logged in before posting. Fire him. Quote Link to comment Share on other sites More sharing options...
sox4lifeinPA Posted July 24, 2007 Share Posted July 24, 2007 QUOTE(Soxy @ Jul 24, 2007 -> 10:38 AM) Fire him. and don't submit his termination notice to your 401k company for 2 weeks. Quote Link to comment Share on other sites More sharing options...
AssHatSoxFan Posted July 24, 2007 Share Posted July 24, 2007 QUOTE(sox4lifeinPA @ Jul 24, 2007 -> 11:15 AM) and don't submit his termination notice to your 401k company for 2 weeks. "fix" the paperwork to rollover his 401(k) into yours Quote Link to comment Share on other sites More sharing options...
mmmmmbeeer Posted July 25, 2007 Share Posted July 25, 2007 QUOTE(santo=dorf @ Jul 23, 2007 -> 06:41 PM) Really quick question, with my new position my company will match 6%. So I take it it is better to put money in my 401K instead of a savings account? I was thinking of putting $250-300 a week in my 401k. That's roughly $1k/ month. If I were you I'd simply deposit the 6% the company will match and then divert your additional savings to a Roth IRA. Once you cap out the Roth then go back to investing more than 6% into the 401k. It shouldn't take you more than 6 months to max out the Roth while saving at that rate. If you think it's a safe assumption that you're in a lower tax bracket now than you'll be when you retire, you want to take advantage of the Roth while you're young. Being the Roth is funded by after-tax dollars, your withdrawals at retirement are tax free. Whereas with the 401k, funded by pre-tax dollars, you will be taxed at the rate determined by the bracket you fall into at retirement. But by all means, you've got to get at least the company match in your 401k whether you want to fund a Roth or not. Quote Link to comment Share on other sites More sharing options...
santo=dorf Posted July 25, 2007 Share Posted July 25, 2007 Ahh, Good advice. I completely forgot about doing a Roth IRA Quote Link to comment Share on other sites More sharing options...
hogsmom Posted July 26, 2007 Share Posted July 26, 2007 Check how much interest and penalties will cost you. You may get a better interest rate from your bank or credit union. Taxes eat up any money you get from a retirement fund if you get it out too early. Quote Link to comment Share on other sites More sharing options...
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