What would happen if I want to completely cancel my 401k

[rake922]

Personal Rate of Return

For the Statement Period 09-01-2007 - 07-08-2010 : -11.17%


I'm not allowed to touch the money that I'm shipping away until I'm 65 years old.... There's a 86% chance I don't live till I'm 65 anyways plus I'm not getting married, and breeding....

Yes I have a company sponsored matching program, but again who cares... For every 1000 bucks that has gone in, 110 has been lost in wall street gambling......

So I'm pretty certain I can't have the money till I'm 65, so lets say I tell payroll to never take another penny out of my paycheck for the 401k plan..... What will happen with the money that's there?

[Patrick McIrish]

If you take it you are hit for a 10% penalty right off the top. Also you also have to claim it on your taxes this year. Seems like there were other penalties as well but I can't recall offhand what they are. Someone here will know....

Unless it's an emergency I would strongly recommend you keep it and continue donating an amount to it no matter how small it might be. Just forget you own it, let it build slowly over time. And don't forget you usually have options as to how to invest the money within your 401k, you can put it in more conservative avenues while still donating to the plan.

[tyrephd]

roughly how old are you?

[RageWizard]

If your company didn't match or doesn't match that much, I would say, take the money out and transfer it to an IRA account which could be stocks (long side only, but you can buy short ETFs), or even security bonds with a fixed rate of return.

However, since you do have a matching program at work, think of it as an instant return on investment. So my advice is that 401K are a total scam, and the only reason to be in them is for the matching contribution from your employer, however, I would take the money out and open an IRA account with the max allowed every year for a deposit in an IRA account, or a much as you put into the 401K. IRA accounts cannot be accessed just like the 401K account until you hit 185 years old, but it isn'taxed, and you can better choose your investments, or even trade stocks yourself, or gamble on stocks as long as you only buy stocks (no shorting). Keep the 401K as a matching mechanism for your company, but take the money out each year into something that isn't taxed when your ancient.

[urge2kill]

Company match = free money.

[rake922]

roughly how old are you?

27 .

[INVEGA MAN]

THEY WILL TAKE OUT RIGHT AWAY:

10% PENALTY
20% FEDERAL TAX
10% STATE TAX

tHEY TAKE THIS ALL OUT BEFORE YOU GET A PENNY

[dodger33]

You should be able move funds inside in the 401k. Get them out of mutual funds and put them in the money market for now if you don't want risk.

[ronjon619]

THEY WILL TAKE OUT RIGHT AWAY:

10% PENALTY
20% FEDERAL TAX
10% STATE TAX

tHEY TAKE THIS ALL OUT BEFORE YOU GET A PENNY

so 40% good night now.

[str]

You must supply more info. Need a breakdown from year to year.
I know a lot of people that would have loved to only lose 11% from 07-10.Many lost 40%-60%.Not saying they are smart but many did.
Need a year to year.
Will answer the other questions after I see what you have broken down.