Kimberly B.
I recently lost my job due to my attendance that involved missing days due to COVID and having a family member that suffers from MS, diabetes, and other inflicting health issues, who needed my care on a few days. Regardless, this now means I am unable to get unemployment benefits and now have a decision to choose for my 401K. Due to the amount being over $1,000, but less than $5,000 I can either cash out the amount or roll over the amount into the IRA selected by the plans sponsor. I have had money saved, but my savings are dwindling, and the money right now would take a lot of stress off me. I also don't want to lose the 20% of federal taxes, 1% of state income tax plus the additional 10% income tax due to early distributions. If I have my information correct from my last statement, will show that either I roll over to an IRA with $1220.00 or cash out with fees taken of about $842. $400 down the drain? I honestly don't know very much about any of this and could use some advice. Reading about it online is confusing me a little more each time I try to get a bit of a grip on what I'm really doing with my money.