Liquidating your 401k account

Because an IRA provides tax benefits, liquidating one to receive cash can lead to penalties that may not make it worth cashing in.The minimum age for withdrawing money from an IRA without penalties is 59 1/2.Often, the reason for making a 401k rollover to IRA accounts of traditional types is a job change, since, 401Ks are usually employer sponsored plans. If you have already chosen a new custodian, you can contact them about completing a “transfer”.You have two options for moving the fund; rollovers and transfers. Making a transfer instead of a 401k rollover to an IRA account may be advantageous.More importantly, why on earth would you pay someone (the government) over 0 PLUS taxes simply to utilize your own money. Before liquidating, however, I recommend you read and implement The One Page Financial Plan and decide if this step fits in with your overall financial plan. I know that 4.5k now seems like it could be pretty useful, but even without further contributions, allowing that money to simply grow tax deferred could leave you with a significant sum in 28-30 years (think in the 65-70k range).More importantly, why on earth would you pay someone (the government) over 0 PLUS taxes simply to utilize your own money.  I cannot stress enough, absolutely no one has accumulated significant wealth by being willing to take losses in excess of 10% voluntarily, even on smaller sums of money.

With websites such as Craigslist or e Bay, it is very easy to sell small and large items alike and you can reach a wider audience.

Saving for retirement should be a financial concern for workers of all ages.

An IRA, or individual retirement account, is a savings account with special protections and benefits that allows you to set money aside for retirement, regardless of whether your employer offers a retirement savings plan.

This is different from the tax on most other income, which changes based on how much you make.

Instead of enduring an IRA liquidation penalty, you can pursue other ways of getting emergency cash.

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