No. of Recommendations: 0
If you make your 401K withdrawal in a year when you have on other income, you will still pay the penalty, but the tax bite will be small.

Otherwise, leaving the funds in a tax advantaged retirement plan until retirement is a good plan. The best is to move it to an IRA and then convert to a Roth IRA. However, leaving it in the 401K can be OK if its a good plan with acceptable rules, low costs, and good investment choices. Otherwise, chose a Roth IRA custodian that better meets those requirements.

Best of luck to you.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
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.