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Originally Posted by idknow
bazigly, devest the money,
pay the fine,
study here all that is relevent (and not so relvent
sue em for taxing your right to work
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AND...untill such time as you are comfortable with your knowledge level to divest said money
without the penalties.....You can do a direct rollover of funds from one 'qualified' retierement plan into another 'qualified' retirement plan without penalties or witholding.
For instance:
You have money in a 401(k). You want/need to move it for whatever reason (the options suck, your being forced out as a reult of losing your job....whatever). You can set up a
TRADITIONAL IRA (not a
ROTH)and direct the 401(k) administrators to do a direct transfer of funds into said IRA. Since you never take possession of the funds, there is no automatic witholding, and since it remains in a 'qualified' retirement account, there is no early withdrawal penalty.
HOWEVER.....you may not want to do this. Like most people it seems you are confusing the nature of the 401(k) account with that of an employer funded pension plan.
In simple terms:
A pension is a completely 'in house' fund established and maintained by the employer. This fund is (illegally) raidable, since all controll is 'in house'. Also, if the company should fold, then there's a good chance there's not going to be any money to fulfill the obligations to the pension fund.
A 401(k) fund is established by the employer with another company (a bank, investment company, insurance company... what have you) acting as administrator. Once the company establishes the fund, the only thing they can do is add money in the form of contribution matching.....and once they match.. that's it... the money is yours.. they can't take it back*. Realy, the only way you could lose this fund is through bad investments, or if the fund administrators company folds.
Do a little more research into the nature of the beast before you panic about your 401(k). I'm sure you'll find your FRN's are not in as much danger as you think.
* I am assuming of course that you enjoy full vestment of all employers contributions at this point.