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I have 7500 in an old ING 401k plan and it's not doing anything. I recently had a garnishment levied for some old court costs to the tune off 20% a pay period. Not catastrophic, but painful for the next 4 cycles. In addition to that I will have some addition court costs to pay in early June and other irregular fees that will put a considerable strain on my budget.

i would like to take a disbursement of that old 401k, but the taxes will probably knock the actual amount I receive to 5k. I was thinking that I should take half and roll that into a Roth IRA on TradeKing and take the remainder as a disbursement to help with the upcoming financial issues or put it in a TK brokerage account and trade FAS/FAZ for a couple of weeks to increase the available cash.

I figure I will pay tax on a smaller amount and the pain won't be as great while guaranteeing some long-term results while trying to make some more cash for the coming problems.

Do you agree/disagree with this strategy?

Should I get my disbursement paid in installments to Trade King or have the whole thing paid to them and then use what is left over after the Roth contribution cap is reached?

I'm not sure I can afford the time between the transfer from ING to TK Roth and then into brokerage account. I'm also not sure TK can/will deposit the remainder into a brokerage account or if it will defer that amount into another RIRA or what. . .

I'm 30 years from retirement and I'm in the 25% bracket currently.
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