401K and employment terminaiton

[billyhappy]

What is the name of your state (only U.S. law)? Iowa

Currently suspended from work pending union investigation as to whether management decision is justified, if I am terminated can I cash out m 401K knowing there are tax ramifications doing this.

 

[quincy]

What is the name of your state (only U.S. law)? Iowa

Currently suspended from work pending union investigation as to whether management decision is justified, if I am terminated can I cash out m 401K knowing there are tax ramifications doing this.

Yes. Whether it would be financially smart for you to do so is an entirely different matter, though.

Here for the benefit of other forum members is a link to your other thread, billyhappy:
https://forum.freeadvice.com/hiring-firing-wrongful-termination-5/suspended-possible-termination-616098.html

 

[LdiJ]

What is the name of your state (only U.S. law)? Iowa

Currently suspended from work pending union investigation as to whether management decision is justified, if I am terminated can I cash out m 401K knowing there are tax ramifications doing this.

Don't do it. Roll it over into an IRA, and then if you need to take some of it, take just what you need. That will minimize the tax ramifications.

 

[billyhappy]

Ok so terminated, question regarding 401K I know each company has specifics about this but in general how does this work, I have a loan against 401K about 3400 left to pay, my balance in 401K is about 18K will they just take out what I still owe out of my balance because I don't want to leave it with them. I am 100% vested.

Also have a small balance in company provided retirement fund that I am also 100% vested don't know if I will get that either.

Thanks

 

[davew128]

The unpaid loan balance is considered a taxable distribution.

 

[LdiJ]

Ok so terminated, question regarding 401K I know each company has specifics about this but in general how does this work, I have a loan against 401K about 3400 left to pay, my balance in 401K is about 18K will they just take out what I still owe out of my balance because I don't want to leave it with them. I am 100% vested.

Also have a small balance in company provided retirement fund that I am also 100% vested don't know if I will get that either.

Thanks

As Dave said, the loan balance will become a taxable distribution. Again, roll everything else into an IRA and then after that take only what you truly need out of the IRA to minimize the tax consequences.

If you are allowed to take out the pension balance (you may not be, that may have to stay put until you retire) again, roll that into the same IRA.