If I leave wells fargo at 55 years old can i take funds from my 401k without the 10% penalty?
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Check out the new rules issued in the stimulus/CARES act. I believe the loopholes in there will allow you to designate funds for withdrawal and avoid taxes/penalties being withheld. Also, under the rules from last year you could pay taxes over a 3 year period and pay it back over that time into any IRA and end up not paying taxes on those $s.
Do you own research and talk to a professional if you’re serious.
2hqj+196FJ8jN, you are wrong about everything. WF will definitely withhold 20% if you don't rollover your balance, no matter what your age is. 55 and separated from service does not get a 10% penalty (for your current plan.) You can still roll over your balance even if the check is made payable to you (you would have to make up the taxes withheld or the tax portion would be a taxable distribution).
It's still taxed as income over 59.5...its a tax defered plan...not tax eliminating plan. What you avoid after 59.5 is the 10% penalty that the IRS levies on some early withdrawals.
I just took out money from my 401k, I'm over 59 and a half, and Wells certainly did take out taxes.
I’m sure a lot of us 55+ will want to know since they will probably lay us all off. They have already proven they don’t want our experience and most likely our pay by their hiring practices.
Funny just learned this today while studying for my series 66. The IRS Rule of 55 allows an employee who is laid off, fired, or who quits a job between the ages of 55 and 59 1/2 to take money from their 401(k) or 403(b) plan without the 10% penalty for early withdrawal.
No, completely untrue. Wells will NOT withhold federal taxes on the 401K withdrawal whether you roll it over or decide to go on a spending free. It is YOU who are responsible for the federal tax treatment.. If you roll it over into an IRA you will need to have the check made out to your new custodian FBO you. You will then receive an IRS form for your taxes from the custodian. It becomes part of your tax return and no tax is owed. If you had not roll it over you have to write a nice big check to the IRS.
You can get this in Yahoo Finance. If you give them your SSN you can get more customized guidance.
Dude, ask these questions on a financial blog, or even better, pay a few bucks for a consult with a weatlh manager or tax guy.
We had a year with a lot of income and a lot of things like medical bills, and for a couple hundo's a financial manager saved us thousands, mostly by telling us things like when to do what and what the tax implications are.
Don't count on good financial advice on a layoff blog filled with us disgruntled types.
TO clarify, what do you mean by "take" money from your 401k?
1) do you mean to withdraw money from your 401k , or
2) do you want to rollover the money to an IRA?
I think you mean to do a rollover to an IRA, but if you want to withdraw money from 401k then you must wait until you're 59.5 to withdraw money without the penalty.
Hint: IRA Rollover probably makes the most sense. Any investment firm (Vanguard, Fidelity, Schwab etc) has forms and help to assist in transferring your Wells Fargo 401k to another investment via IRA Rollover.
I wouldn't trust any of these mofos. It's like getting advice from Suze Orman.
Simple answer YES. I know I had to take money out because it was difficult to locate a new position.
Post ID: @kom+196FJ8jN ... it really is ok to say “I have no idea...”
The IRS Rule of 55 allows an employee who is laid off, fired, or who quits a job between the ages of 55 and 59 1/2 to pull money out of their 401(k) or 403(b) plan without penalty.2 This applies to workers who leave their jobs anytime during or after the year of their 55th birthdays.
Of course, there is a slight catch you need to be aware of. The Rule of 55 only applies to assets in your current 401(k) or 403(b)—the one you invested in while you were at the job you leave at age 55 or older.3
If you have money in a former 401(k) or 403(b), it's not eligible for the early withdrawal penalty exemption. You would have to wait until age 59 1/2 to begin withdrawing funds from those accounts if you wanted to do so without paying the 10% penalty.
https://www.thebalance.com/what-is-the-rule-of-55-2894280
Check out the rule of 72T. I think it would fit nicely for your situation if you are planning on not going back to work. Of course check with your tax advisor.
Nope all wrong. If you are 55 and not working you can withdraw from your 401k or retirement account with no penalty. No wonder you guys are getting laid off y’all can’t even figure this out.
Ask your CPA....
You will need to take as a rollover to an IRA so Wells will not WH taxes. otherwise they will with hold Federal.
If 55 or older which I am as well, I believe the answer is yes. But only from your Wells Fargo 401k.
This is not official advice, I'm not HR or a financial advisor. That said, 59.5 is typically the age where you can pull $ from a 401(k) / tIRA without incurring penalties. If you need to access that money sooner, I highly recommend that you look into the SEPP (Substantially Equal Periodic Payment). Google it and consult real pros for more info. I won't go into the details because there's lots of rules/requirements and this isn't the place for that, but it's a mechanism for obtaining $ from your retirement account prior to age 59.5 without the 10% penalty. Link for the basics from Investopedia:
https://www.investopedia.com/articles/retirement/02/112602.asp