| At some point in the future, you will no
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| | he files his tax return, but that could
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| longer be working where you are. Whether
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| | take a number of months. Why go through
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| it's because you retire, get laid off or
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| | this hassle when using the correct
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| change employers, it's your
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| | transfer method will avoid the 20%
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| responsibility to be prepared. It's a
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| | withholding and will not make you
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| necessity -- your retirement depends on
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| | scramble to find funds to cover the
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| it.That's because when it comes to your
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| | withholding amount?Build Your Wealth and
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| pension funds, you have several options
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| | Retire Financially Secure With Your 3
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| open to you when you leave your job. And
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| | Other OptionsYour other options include
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| if you don't know what those options are,
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| | (1) leaving your money with your former
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| and choose the wrong one, you will have
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| | employer's plan; (2) rolling it over to
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| the IRS smack dab in the middle of your
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| | your new employer; or (3) rolling it over
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| IRA. This means your chances of having
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| | to an IRA.Each of these options will help
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| the opportunity for long-term tax
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| | keep the IRS out of your IRA, if you
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| deferred wealth building become very
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| | choose wisely and follow all the rules,
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| slim.Option 1: Taking a lump-sum
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| | which can be complex. However, there's
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| distribution (cash out)Off the top, you
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| | more to consider than merely the tax
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| will lose 20% of your accumulated money
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| | implications. What about growth? Safety?
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| because your employer is required to
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| | The next Enron?Retire Financially Sound
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| withhold this amount for federal taxes.
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| | or Retire With Debt - It's Your
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| Cashing out your retirement plan is
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| | Responsibility To Make The Right
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| counted as receiving ordinary income, and
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| | ChoiceSo, in conclusion, taking a
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| depending on your tax bracket (ordinary
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| | lump-sum distribution (cash out) from
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| rates now reach 35%) you may end up owing
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| | your 401K means that all the money you
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| even more than that 20%, and that doesn't
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| | withdraw will be subject to income tax at
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| include the state taxes that may apply as
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| | ordinary income rates that now reach 35%.
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| well.Furthermore, if you are younger than
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| | And don't forget that additional penalty
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| 59½ (age 55 in some limited cases) you
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| | of 10 percent on top of the ordinary
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| will be penalized for an additional 10%
| |
| | income tax if you leave your job before
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| off the top. So, our old pal Uncle Sam
| |
| | age 55. This will leave you with no tax
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| just slashed your retirement savings you
| |
| | deferred wealth building for you and your
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| have accumulated for your Golden Years by
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| | family, which means there is a good
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| a third or more!Avoid this entirely. (In
| |
| | chance you will not retire financially
|
| fact, it's difficult to even think of it
| |
| | secure. Is that what you want for you and
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| as an "option.")For example, Dan, age 50,
| |
| | your family?Avoiding all the pitfalls and
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| left his job. He had $100,000 in his
| |
| | dangers can be accomplished by choosing
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| employer's 401(k) plan. Dan decided to
| |
| | the right kind of rollover for your IRA,
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| take the money from the plan and open a
| |
| | based on your specific, individual and
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| self-directed IRA account. As a result
| |
| | unique situation.Remember, this is your
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| Dan's former employer sent him a
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| | retirement nest egg. The better you can
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| distribution check for $80,000 -- Dan's
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| | protect it and invest it, the farther
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| $100,000 account balance, less 20%
| |
| | along the road to a glorious retirement
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| withholding. To avoid all income taxes
| |
| | you will find yourself.Paul Hooper,
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| and penalties, Dan must not only deposit
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| | President of Marketracker Capital
|
| the $80,000 check within 60 days of the
| |
| | Management, Inc. can help you keep the
|
| distribution, he also must deposit
| |
| | IRS out of your IRA. Learn how to make
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| $20,000 (the amount withheld by his
| |
| | smarter choices with your money by
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| employer) by that same date. The $20,000
| |
| | emailing to receive a FREE SPECIAL REPORT
|
| must come from sources outside of the
| |
| | full of ideas and tips on how to keep the
|
| distribution. If Dan does not have
| |
| | IRS out of your IRA and roll it over in a
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| $20,000 from other sources, that amount
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| | way that will lead you to a life of
|
| will be treated as a distribution and
| |
| | prosperity. Be sure to include SPECIAL
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| will be subject to income taxes and
| |
| | REPORT in the subject line to ensure a
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| penalties.Sure, Dan will get this $20,000
| |
| | safe delivery.
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| back in the form of taxes withheld when
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| |
|
