Don't know what to do...

Avatar for lvhunnie
iVillage Member
Registered: 03-28-2003
Don't know what to do...
4
Wed, 06-18-2003 - 1:12pm
Ok......I received my 401K cashout from my last employer. I'm not sure what I want to do with it since I'm not back at work until the misdemeanor clears. Part of me wants to stick it in savings until my first paycheck, which would be at the end of July. The other part of me wants to snowflake all into bills. By the way the hubby is only working part time at a retail store so his income is very small....

What would you do in this situation????

Thanks in advance!



lvhunnie

iVillage Member
Registered: 04-17-2003
Wed, 06-18-2003 - 1:22pm
My hubby took out his 401k we both took out our profot sharing it really killed us on our taxes. They say you can roll it into something and use it for a down payment and not loose as much good luck . Angie
iVillage Member
Registered: 06-14-2003
Wed, 06-18-2003 - 10:23pm
I tend to agree with Angie... I got laid off last year and never decided what to do with my 401k. Anyway, one day I checked the mail and there was a check! Yippee. Well, I spent it instead of rolling it over, and now I am owing taxes that I can't afford for last year. Granted, I did use it to pay off some debt... My advice would be to roll it over, or if you do use it to pay some debt, be prepared to owe some taxes on it.

Good luck!

Miki

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Thu, 06-19-2003 - 1:45pm
ivhunnie,

when i had my twins, and i stopped working, i rec'd my 401(k) cashout. i deposited into a savings accts for my newborns.

if i didn't have my twins, i think i would have put toward my debt.

i can not tell you what to do. just follow your gut feeling.

mym

iVillage Member
Registered: 07-11-2001
Fri, 06-20-2003 - 10:25am
Personally I would roll it into a Roth IRA (as opposed to a Traditional)and start diversifying my retirement plans. Also you don't want to incur the tax penalty that applying the money for credit cards and bills would certainly levy, and a pretty hefty one. The money for mine can only be used penalty free for what they call 'financial hardship' - down-deposit for a primary residence, medical expenses, college loans and prevention of eviction or Foreclosure. I personally would talk to a financial advisor for some free advice. Remember that money is for retirement and no matter how tempting it is to want to spend it now, think how important it will be to your future. Save on the tax, unless you're able to prove 'financial hardship' and apply the money there.