I am cashing out my 401k any paths to take to avoid irs penalties?
I want the cash out being I can do more with it in other places. just wondering if I can roll it over than withdraw it?
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If you are withdrawing, why roll over?
I presume you are withdrawing to use that money elsewhere, and not for retirement, right?
The only advice I would offer is to look at your income and your tax brackets. Maybe you split up withdrawing it over two separate years to avoid taking a bigger tax hit.
Rolling a 401K to an IRA and then cashing it out doesn’t get rid of the tax.
It *does* change the penalty rules, but unless you qualify for an IRA exception to the 10% penalty, it won’t make a difference there either.
To avoid the 10% penalty on 401K–unique to 401K:
separate from job after age 50
split up money due to divorce
To avoid the 10% penalty on IRA–unique to IRA:
paying for health insurance premiums
paying for higher education expenses
paying $10K down on first home