I've been investing in my 401K at work because of the employer match but I didn't realize the minimum to keep it with them is just about as high as the minimum (usually ~$2500) to rollover to an investment company like Charles Schwab.

I'm pretty sure I'm doing to get killed in penalties and tax if I take the cash out (if I even can) when I go back to school this fall and no longer work for my company. Any suggestions? Or know of any discount brokerages that don't require such a high amount to rollover?

8/12/2006 12:18:03 AM

You should ask Fidelity and Vanguard...I think they have low minimums. If you take it out, it'll be ordinary income tax (which should be kinda low for you) and 10% premature withdrawal penalty.

Also, talk with your company. You may be able to remove the money penalty (but not tax) free for use on tuition when you go back to school.

8/12/2006 12:21:08 AM

i thought if you could claim financial hardship, you could avoid the early withdrawl penalty.

8/12/2006 1:56:54 AM

oh, and one more thing.

the Lounge is here: http://thewolfweb.com/message_section.aspx?section=1

8/12/2006 1:58:03 AM

^^ generally only for like a downpayment on a house i think

8/12/2006 8:09:48 AM

^^ how is this not a financial topic?

thanks bgmims

[Edited on August 12, 2006 at 10:20 AM. Reason : .]

8/12/2006 10:19:33 AM

Roll it over to a roth IRA. Yes you'll pay taxes on it but it will grow TAX FREE. I'm about to do that to my wifes old 401k that has about that much money in it.

8/12/2006 1:33:39 PM

She would have the same problem with not having the minimum to open up a ROTH. Are they actually forcing you to cash out your 401K? I have never heard of such thing. I rolled over mine when I left, but I could have left it at the previous place if I wanted to do so.

8/12/2006 7:09:49 PM

I think you can do it at the state employees credit union if she can get in there.

8/12/2006 9:30:40 PM

^^ there is no minimum to open up a roth ira

8/12/2006 11:17:46 PM

you shouldnt put all into a roth. you should put some into a traditional. because you don't knwo what the tax rate is going to be 20-40 years from now.

8/12/2006 11:44:56 PM

Bobby, there is legally no minimum, but most financial institutions have a minimum.

It isn't high though, I think you can do it a lot of places for less than 2500

8/12/2006 11:50:32 PM

I know fidelity and most other large ones have a 2500-3000 minimum. I know some places don't have a minimum but the fees aren't worth it if you are putting in a very small amount.

Quote :

"you should put some into a traditional. because you don't knwo what the tax rate is going to be 20-40 years from now."

Do you really think your tax is going to go down? I would put it all in a ROTH.

[Edited on August 12, 2006 at 11:56 PM. Reason : ]

8/12/2006 11:55:02 PM

A Roth is a good idea at this point. Tax rates will not be any lower than now

Also, stop calling it a ROTH, it isn't an acronym, it was named after the bill's sponsor.

8/13/2006 12:14:19 AM

nm



[Edited on August 13, 2006 at 12:18 AM. Reason : ]

8/13/2006 12:18:09 AM

I didn't intend for it to be an acronym. I was shouting.

8/13/2006 12:28:01 AM

I'm sure you were...you lying bastard

8/13/2006 12:51:57 AM

ROLLOVER IRA!!!!


first off who do you have your 401k through?

8/13/2006 5:55:05 PM

Quote :

"I think you can do it a lot of places for less than 2500"

Such as?

8/13/2006 6:53:37 PM

this is technically a Soap Box topic, but in practice, I think you'll get better results in the Lounge. Let me know if you want it moved. Your call.

8/13/2006 9:55:14 PM

^^NC STATE EMPLOYEES CREDIT UNION

8/13/2006 10:52:25 PM

Cool. Thanks!

8/14/2006 8:15:51 AM

I believe it's through NY Life with my company. My company requires it to be around $2500 to leave it with them, much as many of the financial institutions do to roll it over. And theDuke866 if you'll move it so I can possibly get some more feedback I'd appreciate it :-)

Thanks for the info up to this point anyways everyone!

8/14/2006 11:43:02 AM

You could always try ramping up your contributions so its at 2500 when you leave. With matching I would assume you would be pretty close to 2500 unless you've only worked there a few months.

8/14/2006 11:48:56 AM

Quote :

"Such as?"

Janus - $500
Washington Mutual - $0
Scottrade - $500
TD Ameritrade - $500

8/14/2006 12:12:08 PM

^^ that would require me getting like $2000 in a week...

AND

Quote :

"We're sorry, Washington Mutual does not currently accept rollover contributions from residents of your state."

[Edited on August 14, 2006 at 12:20 PM. Reason : WAMU]

Update: Just called TD Ameritrade and they have no minimum... customer service rep told me to apply online and I'd have an account set up in 15 minutes

[Edited on August 14, 2006 at 12:27 PM. Reason : .]

8/14/2006 12:18:56 PM

The biggest problem with the Roth IRA is history. The government changes the rules and breaks promises all the time. How much do you believe withdrawals from a Roth IRA will still be tax free in 40 years?

8/14/2006 2:04:26 PM

Quote :

"How much do you believe withdrawals from a Roth IRA will still be tax free in 40 years?"

100% or else I wouldn't be putting money in one. It has already been taxed so it's not like the gov raising taxes to some huge amount would affect it. If they wanted to tax withdrawals it would essentially be stealing. If you are worried about that are you not worried about the gov just stealing money from your bank account as well? Reminds me of robot Nixon from Futurama...

once I'm swept into office I'll sell our children's organs to zoos for meat, and I'll break into people's houses at night and wreck up the place! Mwahahahahahaha!!

[Edited on August 14, 2006 at 2:15 PM. Reason : quote]

8/14/2006 2:15:37 PM

this thread makes me really happy i'm taking bus 225 in the fall

[Edited on August 14, 2006 at 2:21 PM. Reason : i wish someone could teach me all these terms and how to use them]

8/14/2006 2:20:45 PM

Which terms?

8/14/2006 2:22:06 PM

I took BUS 225... good class. Very general though unfortuately :-( I knew a lot of the info already but it was nice to hear another perspective on some issues

8/14/2006 2:26:01 PM

Quote :

"Which terms?"

i agree - you shouldn't need a class to figure out everything in this thread - people that need a class for this are the ones that need to be babied through life

8/14/2006 2:27:26 PM

yeah because i do shit with 401ks and roth IRA's on a regular basis

8/14/2006 2:29:46 PM

Quote :

"people that need a class for this are the ones that need to be babied through life"

But how else will they figure out they can't rely on ss and actually have to save money for retirement?

8/14/2006 2:37:24 PM

man i sure hope none of tww fag trollers comes in and ruins ncsulilwolfs thread

[Edited on August 14, 2006 at 3:12 PM. Reason : .]

8/14/2006 2:50:30 PM

What's so funny?

8/14/2006 3:01:16 PM

man i sure hope none of tww fag trollers comes in and ruins ncsulilwolfs thread

[Edited on August 14, 2006 at 3:12 PM. Reason : .]

8/14/2006 3:02:00 PM

Why is that?

8/14/2006 3:02:25 PM

man i sure hope none of tww fag trollers comes in and ruins ncsulilwolfs thread

[Edited on August 14, 2006 at 3:12 PM. Reason : .]

8/14/2006 3:03:21 PM

the only thing obvious here is that you are a tard drunknloaded

8/14/2006 3:04:04 PM

You could have a 403(b) but I doubt that is what you were talking about when you said you don't need to have a 401K or IRA.

8/14/2006 3:04:28 PM

man i sure hope none of tww fag trollers comes in and ruins ncsulilwolfs thread

[Edited on August 14, 2006 at 3:13 PM. Reason : .]

8/14/2006 3:06:32 PM

dnl u need 2 stop caring so much lol!!!1

8/14/2006 3:07:25 PM

I am tried of using simple logic.

Quote :

"the only thing obvious here is that you are a tard drunknloaded"

8/14/2006 3:08:18 PM

man i sure hope none of tww fag trollers comes in and ruins ncsulilwolfs thread

[Edited on August 14, 2006 at 3:12 PM. Reason : .]

8/14/2006 3:08:29 PM

Tis a shame you started again.

8/14/2006 3:08:53 PM

sometimes i can't tell if he's really that retarded or if he is trolling


Q-1. How are distributions from Roth IRAs taxed?

A-1. (a) The taxability of a distribution from a Roth IRA generally depends on whether or not the distribution is a qualified distribution. This A-1 provides rules for qualified distributions and certain other nontaxable distributions. A-4 of this section provides rules for the taxability of distributions that are not qualified distributions.

(b) A distribution from a Roth IRA is not includible in the owner's gross income if it is a qualified distribution or to the extent that it is a return of the owner's contributions to the Roth IRA (determined in accordance with A-8 of this section). A qualified distribution is one that is both--

(1) Made after a 5-taxable-year period (defined in A-2 of this section); and

(2) Made on or after the date on which the owner attains age 59 1/2, made to a beneficiary or the estate of the owner on or after the date of the owner's death, attributable to the owner's being disabled within the meaning of section 72(m)(7), or to which section 72(t)(2)(F) applies (exception for first-time home purchase).

(c) An amount distributed from a Roth IRA will not be included in gross income to the extent it is rolled over to another Roth IRA on a tax-free basis under the rules of sections 408(d)(3) and 408A(e).

(d) Contributions that are returned to the Roth IRA owner in accordance with section 408(d)(4) (corrective distributions) are not includible in gross income, but any net income required to be distributed under section 408(d)(4) together with the contributions is includible in gross income for the taxable year in which the contributions were made.

8/14/2006 3:09:20 PM

man i sure hope none of tww fag trollers comes in and ruins ncsulilwolfs thread

[Edited on August 14, 2006 at 3:13 PM. Reason : .]

8/14/2006 3:09:25 PM

Ok boys, that's enough. All of you go to your corners and think about what you've done.

8/14/2006 3:11:57 PM

i'm sorry, i'll be good from now on

8/14/2006 3:17:03 PM