401k early out
Client 47 years old, residence California
company downsized
has $18k in company 401k
Client is going to buy a Sandwich shop / deli
Needs the money (of course every last cent 🙂
Options:
1) take the money pay the 20%
2) form llc/corp, move ttee to ttee to his own 401k
then take $$$ out as a loan??
suggestions Ladies and Gents?
Permalink Submitted by Al Fry on Sat, 2008-10-04 22:45
If he moved it to an IRA, then cashed it in, there would be no 20% withholding, just the 10% penalty which he would have PLUS the 20% withholding id the 401(k) was cashed out. I believe the loan is limited to 50% if he moved it to his own 401(k) at the deli.