ItDontMeanAThing
Full time employment: Posting here.
This seems like a no-brainer, but because the decision can't be reversed, I thought I'd ask.
I turn 55 next year. My plan is to retire before the end of this year. My current 401K will be worth about $23.5k on the planned date. I don't need this money before I turn 59 1/2, but it would be nice to be able to get at it without penalty if I did. Obviously if I wait until next year to leave my job, I'll avoid the potential 10% penalty.
On the other hand, I have a boat load of vacation that I have to either use this year or lose it, but if I quit I'll get paid for all of it. If I leave this year I get paid for $7k worth of vacation (before taxes). If I leave next year I have to use or lose 14 days of vacation and then get paid for the remaining $2.5 worth of vacation and no potential 401k penalty.
I don't want to use the vacation, I'd rather have the cash. I can't see any financial reason to wait until January to quit. Am I missing something?
I turn 55 next year. My plan is to retire before the end of this year. My current 401K will be worth about $23.5k on the planned date. I don't need this money before I turn 59 1/2, but it would be nice to be able to get at it without penalty if I did. Obviously if I wait until next year to leave my job, I'll avoid the potential 10% penalty.
On the other hand, I have a boat load of vacation that I have to either use this year or lose it, but if I quit I'll get paid for all of it. If I leave this year I get paid for $7k worth of vacation (before taxes). If I leave next year I have to use or lose 14 days of vacation and then get paid for the remaining $2.5 worth of vacation and no potential 401k penalty.
I don't want to use the vacation, I'd rather have the cash. I can't see any financial reason to wait until January to quit. Am I missing something?