Welcome! | Ask A Question
Asked 4/24/2009
|
How to close a 401k I have been diagnosed with sleep apnea, which is a disability in the eyes of the state. I use a CPAP machine at night so I breathe properly. My question is, since I cannot continue in my career as a CDL driver because the condition will not allow me to pass a DOT physical, are there any provisions for someone diagnosed with a disablility? I will be entering vocational re-training, and could use the money to start my life over. |
Answer 1/6 - Submitted 4/28/2009
You can withdraw the funds, once you leave employment with the company that you have the plan with.. (usually) However since it does not sound as though you are considered PERMANENTLY disabled.. you will have to pay tax and penalty on the amount you withdraw...
Contact the aministrator to see if withdrawal is imediate following your separation from the employer, or if there is a wait period.
Answer 2/6 - Submitted 4/28/2009
No, I am not permanently disabled, but I could really use the funds to start my life over again. They supposedly reconcile the accounts at the beginning of the year, but I have been told there were "changes made" in regard to accounts by the government, so I have not even begun to close it yet. The controller at the company has been very limited in regard to disseminating information about the process. I will be closing it permanently, and was hoping not to get nailed twice by the IRS for taxes owed on it. Upon withdrawal, and as income for the fiscal year of withdrawal. However, I will be enrolling in school possibly for the Summer term, but definitely by Fall through the NYSED, as I can no longer hold a CDL or operate CDL vehicle with this "respiratory dysfunction" according to FMSCA guidelines. Will that change something as well? The situation is a bit complex...
Answer 3/6 - Submitted 4/28/2009
Unless they were post tax contributions-- (probably not) you will have to pay the tax, and report it on a 1099r--- even if you were completely disabled.. (that just avoids the extra 10% penalty)
It sounds like a balance forward plan, where the employer (or board) controls the funds.. not an administrator... This is a bit more complex... you still should be able to close as you are no longer working there.. however they usually do make you wait until all year end accounting is done... Check the plan document (summary plan document or SPD)--- they must furnish you with one if you ask...
This will outline all the plan provisions that they must follow.... each plan is unique and employers have a lot of different options as far as payout and timing.. that will give you the best information....
There were no extraordinary changes made to 401(k)'s recently.. so I would ask for some clarification there...
Answer 4/6 - Submitted 4/28/2009
Answer 5/6 - Submitted 4/28/2009
Type your Answer in the box below and post your answer.
My husband wanted to close his 401k but the company told him that he couldn't, the only way for him to do that is by quiting.
I would like to close my 401k. i notified my employer in june 2008 of my wish to close it and they just keep sending me letters saying the amount is decreased. so far it has gone from $38k to $22k. is there a way i can get the original amount and if not way? thanks for your time
At the beginning of the year we took out a loan on our 401k. at this point we still need more and were looking to make a withdrawal ok it. ing told us we can't withdraw but we can file for a hardship. we have already done this and were denied. we don't want to wait till we are forclosing on...
|
Do you have to quit your job to close out your 401k? My husband wanted to close his 401k but the company told him that he couldn't, the only... |
|
I would like to close my 401k. i notified my employer in june 2008 of my wish to close it... |
|
Can i withdraw money from my 401k or even close it? At the beginning of the year we took out a loan on our 401k. at this point we still need... |
|
I was added to my company 401k. two months later i left this job. finally, 5 months later... |
|
How does one take out money out of a 401k safely? My husband boss wants to close out the 401k at his work. how do we do this with out penalty? |
|
Leaving company, need to withdraw 401k. Ok, is it possible for me to take all my money out my 401k? i understand i will have to pay... |

Ask A Question
Ask a new question about
401k: