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401k

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Bobbi Jo

Guest
What is the name of your state?california
i was moving so i left my job. i asked to close my 401k plan because i needed the money to move, i signed the required paperwork. how long does my ex employer or investment company have to issue a check
 


Beth3

Senior Member
That depends entirely on the particulars of your employer's Plan. They could have it set up so that 401(k) monies are distributed every time a distribution request is made or they could limit it to just several times a year.

I suggest you contact your employer and ask them.
 

cbg

I'm a Northern Girl
BTW, while you legally can request the account to be cashed out, you will have to pay taxes on it AND there will be a 10% penalty since you did not roll it over to another tax-deferred plan.
 

ShyCat

Senior Member
Not to be picky or anything, but the 10% penalty is waived if the employee turns 55 (or older) in the calendar year in which employment with that employer is terminated. There are other exceptions too (like disability).
 

cbg

I'm a Northern Girl
Still, the high probability is that there's going to be a penalty. The IRS does not let go easily.
 

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