Kinda off topic question, but does anyone know how long it usually takes for the 401k full payout option to become available in the Fidelity dashboard, after you leave Cisco? Due to family reasons I am leaving the US so I don't really care about the penalty fees and taxes.
I've heard horror stories about Fidelity and want to make sure I get at least part of my money back as soon as possible
I don't know how long Fidelity will take but the IRS requires the plan provider to withhold 20% of your withdrawal for federal income taxes. But the 10% early withdrawal penalty is not withheld.
Transferring a 401(k) to another 401(k) or an IRA is usually completed within a week, but that's not really your question. But it's the only experience I have.
If you're willing to pay the taxes and penalties for early withdrawal, I don't see why transferring the money to a US bank would be any different. From there, you can then transfer it to an overseas account along w/ the rest of your personal financial accounts.
Having Fidelity transfer it to an overseas financial institution would complicate things and probably delay it longer than you want.
I’ve never had any issues with Fidelity but not knowing the source of your information I’m not able to dispute it.
Per Fidelity you should have a check in 5-7days once all the paperwork is in order
https://www.fidelity.com/accounts/services/content/withdrawal.shtml
@a2+1jmd9x2pm I meant I am okay with paying the taxes. Some people recommend not touching the 401k because of the taxes, but as I will probably never work in the US again it doesn't make sense to keep it here
not sure if what you mean is that you have no intention of paying the taxes? fine by me I don't care one way or the other but if you ever have need to work again in the US, the IRS will bodyslam you
they are very patient and will just keep running up interest...I've seen people slammed ten years later
personally I recommend just leaving the 401k alone unless you are absolutely desperate for money...the penalties are brutal