Leaving company. 401k options?

Discussion in 'FedEx Discussions' started by Code43, Aug 13, 2015.

  1. Code43

    Code43 Member

    Need some info on what happens to our 401k after employment with FedEx. Can I cash out? What kind on penalties do they hit you with? Im not really interested in rolling it over to another 401k at this point. Just want my money back.
     
  2. jdlarch

    jdlarch New Member

    By cashing out, you not only get taxed and penalized, but you also lose the earnings that money could have generated. You won't even get all of your money: FedEx is required to withhold 20 percent for the IRS. If you don't put the money in a qualified retirement account within 60 days, it's taxed as ordinary income. Add on a state income tax, if one applies to you. And if you are under age 59½, you'll incur a 10 percent early withdraw penalty to boot. Without storing it away until you are nearly 60, you basically end up with half or less than half of what you currently have in there.
     
  3. Roll it over or you will be sorry.
     
  4. By The Book

    By The Book Well-Known Member

    Have you been with fed x long? Try to look at this as money to help you offset costs of things like healthcare when you are close to 60. Roll it over and forget about it.
     
  5. Code43

    Code43 Member

    Less than 5,000 in this account btw.
     
  6. Roll it over. What's a couple thousand today versus multiples of that ,later on in life.
     
  7. Code43

    Code43 Member

    True. I'll look into rolling it over. Would of been nice to take the family on a weekend getaway. I may use some of my unused vacation time money for that.
     
  8. By The Book

    By The Book Well-Known Member

    Now your talking!