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Asked 3/16/2009
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How long should it take to get your 401k from your employer after termination? Also if you take distrubition to pay household bills what would be amount taxes on $75,000 distribution. |
Answer 1/1 - Submitted 3/17/2009
Depends on the administrator and the plan document.. Once you show terminated the admin. company can begin the process... if the plan allows for immediate distribution it should only take a couple weeks max.. some bigger companies, (Fidelity, Met) process within a couple days.
$75,000 distibution - any distribution fee - $15,000 (20% federal withholding) = $@ 60,000 to you, though you will be responsible for 10% ($7,500) early withdrawal penalty if you are under 55--(59 1/2 in most cases, 55 if terminated from employment.) Unless you asked that they withhold that as well.. ($52,500)--- Do you have this in a stable value fund, so it does not fluctuate while you are awaiting distribution?
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