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Subject:  Re: Preparing a 401(k) for Retirement Date:  10/27/2000  11:35 AM
Author:  pauleckler Number:  25777 of 88036

Rather than paying penalties, you may want to consider an SEPP distribution from your 401K plan. This would minimize income taxes and penalties by taking out only a fraction of the balance each year. I would guess you would be able to repurchase those stocks for commissions less than than the 10% penalty and 40% income taxes (depending on your tax rate).

Talk to your plan administrator about rolling over the 401K plan. Some plans will make the transfer without causing you to sell the assets (especially if you have a mutual fund company as the plan administrator). But it depends. If you change adminstrators, you probably will have to make the transfer in cash. But this is not a problem if you buy no load mutual funds.
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