401k

Discussion in 'Jevic Transportation' started by notneb, May 30, 2008.

  1. BuzzBeez

    BuzzBeez Extraboard Crazy

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    nothing yet here

    notneb, what did you get a letter in the mail ?
     
  2. notneb

    notneb Member

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    no letter ever showed. i just went to fidelity website today and it finally showed available to withdraw. if u opt to withdraw it will show you your 20% tax taken out up front. Then u have to pay 10% early withdrawl next year when u file taxes. i took the cash. the hell with it. might as well take a nice vacation while i'm off. :wavey:
     
  3. BuzzBeez

    BuzzBeez Extraboard Crazy

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    no penalty

    My banker/financial person told me if you're over 55 you can take a withdrawal and only half to pay the taxes, not the penalty. It's called a qualified withdrawal then whatever you don't cash out you can roll the rest over.
     
  4. m3sews

    m3sews Member

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    The 20% they withhold doesn't mean anything, other than some of the tax has been paid. Whatever amount you cash out will be claimed as income on your tax return. It will get added to all your other income, including unemployment. From that you will take your deductions and exemptions. That will give you your taxable income. For 2008 if your taxable income is 65100+ you will be pay 25% instead of the 15%.

    If the early w/d penalty applies to you, you will add 10% of the 401K you received to the above tax.

    Also if you owe when filing your 08 return, you may have to pay a penalty for owing. It depends on the amount owed and amount of refund or pd when filing your 07 return.
     
  5. DoorMatt

    DoorMatt Member

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    I'm pretty sure the age for qualified withdrawal without penalty is 59 1/2 yo. Not 55.
     
  6. BuzzBeez

    BuzzBeez Extraboard Crazy

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    Yes Door Matt you're right /just talked to fidelity and there is a clause in there that you can avoid the 10% penalty only if you are considered "retired" by your company and 55 or older.
    And guess what she said? We are considered "terminated" so nobody qualifies for that specific clause.
    Just another kick in the a$$.
     
  7. tp51

    tp51 New Member

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    Wanted to let you guys know. A few years ago my hubby was disabled due to a workers comp injury, and of course Jevic's fine workers comp carrier denied benefits. Long story short, we had to withdraw money from the 401k to pay COBRA and living expenses till he could return to work after surgery. Everyone said no, no, can't take 401K money, the taxes and penalties will be outrageous! Guess what, all MEDICAL expenses are deductible on you tax return on the money withdrawn from the 401K. Didn't pay a 20% tax penalty. Hardly paid any taxes at all, cause that years income was so low. Keep all receipts, even travel due to medical and make sure you have a good tax person. Good Luck.
     
  8. tp51

    tp51 New Member

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    Another thing, take it out as a loan. Then default on it, it's your money. Just make sure you claim it on your tax return the year you cash the check. They will 1099 you over a year later, probably when your income will be better again.
     
  9. TheBigR

    TheBigR Member

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    I would think most of you guys are going to get another job, probably with a 401k plan so why not leave it and restart with your new employer. Need money, take a home equity and get some of the payments deferred or use some of the loan to make the 1st couple of payments till you get on your feet again. Just a suggestion. Hate to see you pay those early withdrawal penalties.
     
  10. longhaul

    longhaul Member

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    my truck was my home and i didnt even own a car so now im living out of a motel room
     
  11. BuzzBeez

    BuzzBeez Extraboard Crazy

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    Equity ?

    Good idea, but not much equity here on my home and land. Had equity a couple years ago, but falling property values and rising taxes ($400 a month increase) really backs things up fast. Don't want the 10% penalty either but next house payment is in 7 days. If that's missed then they'll probably bump the interest rate or attach a large penalty there.
    Got some real good job prospects but they all seem like they're in slow motion.
     
  12. Jodroadway

    Jodroadway Member

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    BuzzBeez, With the way the housing market is, talk to your mortgage company. In today's market most are willing to work with you, cause of so many foreclosures. Also, double check your mortgage statement/booklet, to see if you have a small grace period, like to mid-month without a late fee. Say pymnt due the 1st, you have until the 15th to make it without a late fee, or if you pay between the 16th and 30th, you might have a late fee tacked on. Anything after 30 days then your looking at reported on your credit reports. And basically after the 3rd missed house payment in a row, then mortage/banks start the foreclosure process. Not trying to worry you, but just trying to give you some ideas or options that you can check into, and/or be aware of,,,,,Also if you have any life insurance policies, you might be able to take a cash option out on those, basically as a loan, which you can repay in monthly installments. I know on my husband's policy, if we don't pay it back, the basic penalty will be when he passes, they insurance company will take the loan amount due right off the top of the insurance(say 100,000.00 policy, we take 10,000.00, no payback, they take the 10 to pay loan(dividends), and then we get the balance 90). Alot of times, people totally forget they may have this type of policy. (I think a Graded Premium or Whole Life), not term. Talk with your insurance agent. Hope this made some sense and was helpful. Good Luck!
     

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