401K and quitting

[2Today3Tomorrow]

Well, I did it. I got out.
But I do wonder what happens to my 401k. I can not access my benefits account as workday warned I wouldn't. But how do I transfer/withdraw my 401k?
(I searched the forum but kept getting conflicting answers)

 

[Dream Baby]

A couple of articles discussing this.

How To Roll Over Your 401(k) To A New 401(k)

Congratulations! You’ve just scored a new job with a great company. Deciding what to do with the money in your current 401(k) account should be at the top of your to-do list. You can choose to leave the funds where they are, or you can do a rollover to the 401(k) plan at your new job or an individua

www.forbes.com

https://www.nerdwallet.com/article/investing/401k-rollover-ira-guide

I WOULD NOT LEAVE IT at Target because you would have no control and how it was invested.

Also as you have encountered you might get the run around with Target since you no longer work there.

 

[Hardlinesmaster]

try targetpayandbenefits.com too

 

[KarmaToBurn]

You can't touch it for 6 months though...

 

[Ashfromoldsite]

Well, I did it. I got out.
But I do wonder what happens to my 401k. I can not access my benefits account as workday warned I wouldn't. But how do I transfer/withdraw my 401k?
(I searched the forum but kept getting conflicting answers)

You’ll get a package in the mail in a month or two with instructions.

 

[Ashfromoldsite]

You can't touch it for 6 months though...

Nope. I moved mine the day I got the packet in the mail.

 

[Dream Baby]

Nope. I moved mine the day I got the packet in the mail.

I think they meant once your transfer the 401K you can't adjust your new portfolio for six months.

 

[Luck]

I just called payandbenefits, they said you have to wait 30 days from your final date and then it can be sent via check or direct deposited into the same account you got direct deposit through.
You can do a direct transfed if you already have a new 401k set up, but honestly I did the math and the gains on what I had were minimal compared to how much more stress free paying off a fee misc bills were.

 

[Dream Baby]

I just called payandbenefits, they said you have to wait 30 days from your final date and then it can be sent via check or direct deposited into the same account you got direct deposit through.
You can do a direct transfed if you already have a new 401k set up, but honestly I did the math and the gains on what I had were minimal compared to how much more stress free paying off a fee misc bills were.

If you use the 401K to pay off bills it will be considered a withdrawal and subject to tax.

Then again it might be so little that's it's not worth messing.

I also believe any 401K withdrawals that are replaced by the end of the year negates the penalty.

 

[Luck]

If you use the 401K to pay off bills it will be considered a withdrawal and subject to tax.

Then again it might be so little that's it's not worth messing.

I also believe any 401K withdrawals that are replaced by the end of the year negates the penalty.

Yeah, I did the math and I was able to make up the penalty in 3 months with reduced bills. Technically a loss long term but it gave me freedom to spend time searching for a better job so I think it was well worth it.

 

[Ashfromoldsite]

I think they meant once your transfer the 401K you can't adjust your new portfolio for six months.

That’s wrong also.

 

[Dream Baby]

That’s wrong also.

I wasn't sure about that myself.

 

[targetdude1]

if you cash it out, they'll take 20% taxes and then another 10% early withdrawal penalty presuming you are under age 59.5 (if over you wont get the 10% penalty). so, they'll take 30% total. from a tax perspective thats pretty awful. whereas if you just dribble it out once you're retired, you'll be in probably like the 10% bracket. on say 300k that 20% diff is 60k dollars!

if cashed out it'll be taxed as income in that year, but most of it should be taxed in the 22% bracket or less so the 20% default they take is about right.

anyway i see way too many ppl treat their 401k as fungible. they only get in to get a loan against it later etc. just leave it alone and let it compound until retirement! it'll be here sooner than you think.

if theres two advice i'd give to new tm's #1 would be run #2 would be get in the dang 401k! it's the only thing that builds anything that lasts in this crap job. Just stick it in the correct target date retirement fund and forget about it.

i do remember one friend told me when they got fired, they just got the lump sum one day in the mail and there was never any options. i'm pretty skeptical though, they probably missed something or werent telling the whole truth. i think it was 13k for them, which i'm sure they were thrilled about at the time being newly unemployed!