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401k withdrwal
Old 10-23-2008, 06:06 PM   #1
Confused about dryer sheets
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401k withdrwal

55 year old man.just quit my job and withdrew my 401k money.
Had 14000 dollars in account when i took three weeks to get a check. The check was 12000 dollars,no taxes withheld.
Shouldn't i get the amount that was in there when i quit ,not what was in there 3 weeks later due to stock market decline.

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Old 10-23-2008, 06:12 PM   #2
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Based on when they rec'd & processed. Also, they may have held back employer cont that were not yet vested?

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Old 10-23-2008, 06:20 PM   #3
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Charlton, you can always call the administrator and ask how they arrived at that. I'll throw out a guess that either by the time your order was received and then executed the market moved from $14,000 to $12,000 and that would be what you get or maybe thy sold at $14,000 and withheld the rest (on your behalf) to go toward taxes, this $2,000 would of course reduce your taxes due next spring.
You will owe taxes on the entire amount as taxes and possibly a 10% penalty. 401k money for the most part shouldn't come out until 59 1/2 though there are exceptions and you may qualify at 55 with a job separation. You should quickly find out before your rollover timeframe expires.
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Old 10-23-2008, 06:21 PM   #4
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Market loss, or perhaps a 10 percent penalty for early withdrawal before age 59-1/2?

Just call human resources and tell them you need to know for tax purposes what has been withheld.
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Old 10-23-2008, 06:52 PM   #5
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They may be required to hold out some for taxes by law. Best to ask the administrator of the plan--each plan is different and typically they have different vesting rules and disbursement rules.
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Old 10-23-2008, 10:33 PM   #6
Confused about dryer sheets
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My guess is that they withheld federal taxes.

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