Quote:
Originally Posted by SWWatson
We have to roll my wifes 401K from her ex employer (Fired after 10 years with no write up or anything. 1 mistake) anyway we are going to have to pull 1/2 out to pay off some bills until she finds more work. How much tax does NC or the Feds take besides the 10%? She is 49.
|
Try to use another source of funds or set up a 72t (on a small portion for the 401k funds) for the minimum amount you can get by with.
LIBOR based Home equity loans are really cheap these days (I'm paying less than 3% on a couple I have used to finance income real estate)
OR... roll the 401k to an IRA, convert as much as you can afford of that to a ROTH (by 2010 yr end = 2 yr tax benefit). Then live very lean for 5 yrs till you can start making ROTH withdrawals on the contributed equity (Not the earnings).
Avoid making MORE tax obligations than necessary this yr. ESPECIALLY if she got any severance pay. Find a good accountant and take them to lunch.