Auditman
First Time Poster
Cash: $ 0.65
Posts: 1
Joined: 25 Oct 2004
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I have been contributing to two different 401 K plans at work for the last 10 years or so. I am changing jobs soon and I understand I can keep my unqualified 401 money where it is but that I can not do that for my qualified 401 K plan. Can anyone confirm this and if true, give me any tips for reducing my tax liability? Thanks,
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Mon Oct 25, 2004 2:58 am |
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Andrew
Admin
Cash: $ 467.10
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Joined: 02 Nov 2003
Location: Texas
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You want to avoid a lump sum payout because you'll get hit with the taxes on this income. Check into 401k Rollovers in our 401k Center, they let you manage your investments more and keep the taxman away while you continue to save for retirement.
401k Center
As far as keeping some of your funds in your current 401k accounts, I don't know. Sometimes you can keep all your money there, sometimes you have to move it all. You should check with your plan to see exactly what options are available to you.
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Mon Oct 25, 2004 4:16 am |
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xboxundone
Senior Member
Cash: $ 67.83
Posts: 795
Joined: 19 Sep 2004
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quote:
Originally posted by Andrew
You want to avoid a lump sum payout because you'll get hit with the taxes on this income. Check into 401k Rollovers in our 401k Center, they let you manage your investments more and keep the taxman away while you continue to save for retirement.
401k Center
As far as keeping some of your funds in your current 401k accounts, I don't know. Sometimes you can keep all your money there, sometimes you have to move it all. You should check with your plan to see exactly what options are available to you.
Yea it all depends on your companies 401K plan as there are lot of 401K's out there. Ask your HR person they should be able to help you out. check with the company you are changing to as they might have a roolover setup (thats the best way to go)...... Hope that helps some 
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Mon Oct 25, 2004 12:51 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Joined: 05 Oct 2004
Location: Illinois
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Auditman -
You need to check with your HR department on this, because typically the situation is reversed from what you've described. Usually, non-qualified deferred comp (often called supplemental 401(k)) must be withdrawn and therefore taxed upon your terminating employment. This money normally can not be rolled over into an IRA or into another qualified plan, simply because it is non-qualified. You will be taxed on the total amount upon separation from the company.
I would get to HR with this quickly and get a clarification.
Best wishes -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Nov 03, 2004 4:16 pm |
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