Leaving my employer & withdrawing 403b money?

Question

I have 5000.00 in a 403b acct. When I leavy my employer, I am not going to roll over my 403b to another Retirement Acct or IRA - Of the 5000.00, how much can I expect to get after penalities

Answer 1

Why are you doing that?  It's a very bad idea.

Depends on your tax bracket.  In a 20% tax bracket you'll take away $3500.  20% for taxes and 10% penalty.

Answer 2

That is not a very good idea.  If you need the money, see if you can get a hardship withdrawal.

I would need to know your marginal tax bracket to say how much you'll get for sure.  If its 25%, with a 10% penalty, you will probably get about $3250.

Answer 3

Without rolling it over, you will have to pay an early withdrawal penalty (usually 10-15%).  You will also have to pay taxes on that money.  Altogether you can expect to lose 30-40% (depending on your tax bracket) of that money.  Also, if any of that money was a company match, that money may also be taken away if there was a certain period of time you needed to be employed before you were vested.  For example, if the company matched half of your contributions (which equals $1666.67) and you lose 10% for a penalty and 15-25% for taxes, you could lose more than half of that money.  Therefore, it is NOT a good idea to take that money out without rolling it over into another retirement account.

Answer 4

I agree with both above answers. Don't do something you'll be sorry for later.

Answer 5

NO!  Really I dont think you understand the concept of having a retirement account.  That is not money just sitting there waiting for you to spend it.  Learn, educate yourself before even thinking about withdrawing it.  You'll get hit with so many penalties it not even funny.