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To: kimmie7
Other than no longer contributing, how to get one’s own money without leaving the employer?

Would it be legal to quit the job for a few days, quickly roll the 401K over into an IRA, then get rehired (which I could do and I know I would be rehired), and cash out of the IRA?

10 posted on 07/25/2011 3:10:06 PM PDT by bkopto (Obama is merely a symptom of a more profound, systemic disease in American body politic.)
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To: bkopto

you still will pay the taxes...the IRA will send you a 1099 and report your grab to the govt


21 posted on 07/25/2011 3:15:55 PM PDT by antivenom (visit SBPDL.com and at least read what you and the liberal media are too afraid to say)
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To: bkopto

You do not have to quit to do that. Just tell them that you have decided that you want a different custodian, and are withdrawing all your money to do a rollover in 60 days.

Or you can do a direct rollover, but in a lot of companies it is faster to do a withdrawal or loan. Talk to your human resources department if you have one, or your IRA custodian about whatever rules they have.

Also consider vesting. If you are not vested, you may only get some of your company match. But your contributions and earnings on that money is yours and can be demanded at any time. They have no right to keep it (at least not yet).


25 posted on 07/25/2011 3:21:00 PM PDT by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: bkopto

“Would it be legal to quit the job for a few days, quickly roll the 401K over into an IRA, then get rehired (which I could do and I know I would be rehired), and cash out of the IRA?”

IIRC, there’s an additional 10% penalty for withdrawing money from an IRA in the first two years of it’s existence.


64 posted on 07/25/2011 5:39:49 PM PDT by Rebelbase
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