No. of Recommendations: 1
I wrote:

No, it doesn't make sense. Assuming you stay in the 38% tax bracket when you receive that $38K, then it will cost you that 28% plus the 10% early withdrawal penalty (assuming you were younger than 55 when you left the job at your old employer. That means you will net just 52% of those funds, or $23,560. That's a high price to pay to get that money into a custodial account.

Unfortunately, I didn't proof that close enough as my number typing fingers slipped. That should read:

No, it doesn't make sense. Assuming you stay in the 28% tax bracket when you receive that $38K, then it will cost you that 28% plus the 10% early withdrawal penalty (assuming you were younger than 55 when you left the job at your old employer. That means you will net just 62% of those funds, or $23,560. That's a high price to pay to get that money into a custodial account.

Regards..Pixy
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