UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77403  
Subject: Re: 401(k) job change Date: 11/26/1998 11:37 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Tom, and welcome. You asked:

<<Our company just recently announced that we were bought out by another company Anyway, we will officially become thier employees as of January 1. This employer does allow us to rollover our 401 into theirs.
My question is this (forgive me, I am new to this):

Will this money be taxed or before the going into this new employers plan? I am not aware of the laws.>>

If you transfer your existing 401k plan balance into your new employer's 401k plan there will be no penalty and no taxes due. Taxation occurs only when you receive a distribution from the plan. The penalty applies only if you receive a distribution when you're younger than age 59 1/2. In this case, you aren't receiving the distribution, the new 401k plan is. Thus, no tax and no penalty applies.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Markel Corp.

Markel's Silver Year
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.