Korean Job Discussion Forums

[KuroBara]

I posted this under current events by mistake. I just want to know if I can pay into my 401(K) that i have in Tennessee while in Korea, or if I should cash it out and use it as living money until I get my first pay stub?

[nolegirl]

I am so sorry to be so mean but common sense is telling me not to cash in your 401K. ummm.... wow lets em cash in my 401K when you'll probably lose a sh*t load of money. If you really need the money and don't mind losing 50% by all means but your dumbass if you do, wow, its called common sense, don't cash it in

[crsandus]

You can't contribute into your 401K while you are not employed by a company that has a 401K program. If you choose the cash out your 401K funds, unless it is for some medical emergency or some other special provision within in your 401K program, you will pay a 10% and taxes on that money. Eg. If you had $10,000 you would pay $1,000 in penalties plus income tax on the $10,000 amount and whatever other fees from your 401K provider. Your $10,000 could easily turn into $6,000. On top of all that, your 401K most likely took a brutal hit in the past few months if you owned any stocks or funds. I suggest rolling it into an IRA in Fidelity or Vanguard. I prefer Vanguard myself.

[Jandar]

Yes, do a rollover to an IRA.

[ZenMoto]

And then of course after you do the rollover you can start making contributions to your new IRA... Now's probably a good time to make a contribution if you can... Funds are way down and you'd be buying them on the cheap.

[KuroBara]

Cool! Thank you for the assistance everyone. I did not want it just sitting there doing nothing, and I figured Korea probably does not have a 401(K) program, but I did not think about an IRA. Thanks again!

[Straphanger]

[KuroBara]

wow, it takes so much to start an IRA. Unless my roll over can count as my initial investment, I'm still screwed. Maybe I'll put this off till next year, but I already have the documents ready..hmmm.