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Author: seldrick Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: getting back my 401(k) penalty Date: 1/30/2002 4:12 PM
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Last year I quit my job and moved across the country. After several months of looking for a new job in my new place, I started to run low on cash. About that time, I was contacted about what to do with the money in my 401(k). Against all advice that I've ever received, I had them cut me a check for all that I could pull out, penalty be damned. I needed the money, and what good was retirement if I couldn't eat today? I had only been in the program for about 6 months, so it was less than $2000 in the account, but that'll buy a lot of Ramen noodles.

Now I'm in a position that I can put that money away again, and I've heard somewhere that if I put the total amount (including the penalty that was taken out) into an IRA before April 15th, I can have that penalty refunded to me. Is that right? If so, what do I have to do tax-wise, and can I put it into the Roth IRA that I already have, or must I put it into a new, traditional IRA?
Thanks for your help and keep up the good work, gang.
Mike
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