Distribution

[waid10]

Hi, I am just a regular person looking for information. I am 41 years old. I resigned from my employer a few years ago. I left behind a balance of $27,000 in my 401(k) Plan. I didn't do anything to roll it over or anything. I am now unemployed and need access to the money. Is there any way that I can get the money? If so, what types of penalties or fees will I pay?

Thanks.

[QDROphile]

Most 401(k) plans allow distributions after termiantion of employment at any age. You will have to request a distribution. You will probably not be able to use the plan like a bank. Many plans require a lump sum distribution only, many allow installments oan other forms. Be prepared to roll over the amount you do not intend to spend right away. You can use an IRA like a bank, but beware transaction/withdrawal fees when you chose an IRA provider.

If you do not roll over, the amounts will be taxable at ordinary income rates and subject to withholding at a rate of 20%, plus an additional penalty tax of 10% because you are under 59 1/2 (subject to some exceptions). When you request your distribution, the plan will provide you with some information about taxes and rollovers before you have to commit to the distribution. The IRS has publications on retirement plan distributions and on IRAs, available at the IRS website.