401K rollover

So I need to preface this with I am a really cr-ppy person at money management and all that.

Also, my I left my position for one outside of the company. Followed all the procedures. Background check. Even confirmed what day I would be giving my notice to the new employer. Last Thursday I find out there was budget issues and the whole thing was scrapped. My management immediately tried to undo my resignation however they already backfilled it and nothing could be done. Even though I’ve won numerous STS/CTS awards- and received “exceeds expectations” on my review in march

I have a Schwab 401k, which unfortunately I had to take a loan against to pay some unforeseen escrow issues and tax issues.

Anyways I’m looking into what to do with my Schwab 401k, which I’ve obviously been contributing to since day one.

I am wondering if I can use it for emergency. Mortgage. Car. Any other unforeseen thing that may come up.

Other than trying to plan for any unforeseen circumstances, what can I, or should I do with that 401k

Thank you all. Best of luck.

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Roll your 401k over to your new employer's 401k plan. Then see what if you can take a loan against the new 401k.

According to the Tax Cuts and Jobs Act, the deadline to repay a 401k loan for an employee leaving the firm in 2023 would be April 15, 2024. October, if you file an extension. Again, you should confirm that.

One other thing to add... leave it as a 401K, instead of an IRA. That means either leaving your 401K with Schwab, or rolling it over to your new employer's sponsored 401K plan. 401Ks have more protection than IRAs, and generally its better to leave it in a 401K.

Regarding what another person posted about you have till tax day to repay.... I don't believe that is the case, but as that person suggested, definitely follow up with an RPS rep.

Keep it there or roll it over to your new employer. You will receive an early withdraw penalty if you pull from it now.

You'll need to confirm this, but I believe you have until tax day, 2024, to pay the loan back. If you pull out money, you'll pay 20% tax and 10% penalty if you're under 59 1/2. There are some hardship exemptions, however. You'll need to talk to Schwab about all that.

How much is in it and how much is the loan? Your loan you’ll need to payback immediately or it’ll be considered taxable/penalized event. If there’s not much left because of the loan and you’re cash strapped , may be worth it to take it all.

Dear OP, first sorry to hear of the predicament. I am certain you will find another role, outside of Schwab, or maybe even within Schwab, based on your excellent performance here and the offer that was extended to you.

Here's my advice. And I am more old school, when it comes to money management. Don't dip into your 401K, trying to take early withdrawals. If at all possible, leave that account alone. Whether your keep here at Schwab, roll it over to a new employer sponsored account, or into an IRA. I personally saved a little over $1M here at Schwab, maxing out on 401K contributions every year, and I'm still in my early 40s. There were a few times when I found it tempting to do some kind of early in-service withdrawal, when I was younger, but I am so glad I did not. Remember, this is for your retirement. Don't touch it, and just let it continue to grow.

If you have taken out loans, that is fine. But I think you need to pay that back immediately after leaving Schwab, or it becomes a withdrawal.

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401K rollover

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