runirogvason
New member
Hello, I (29F) recently quit my job last month due to personal health reasons. My former job used to double match whatever I put in my 401(k). For example, if I put $100 in they would put $200. It was great. This is my 1st 401(k) account and it has been active for about four years now with Fidelity.
Well, after I left my job, I guess Fidelity was notified and they sent me an email telling me that I have options with this account. I’m not sure if it’s still growing or not. I really don’t know anything about investing. I just knew when I was hired at my corporate job to enroll in a 401(k) for my retirement one day. In the email, the options were 1) withdrawing the money or 2) rolling over the money into an IRA (I don’t even know the difference between that and a 401K). What’s the point of me rolling over the money if I don’t have another job to continue to put money in there?
Anyway, I have thousands of dollars sitting in that account and I don’t know what to do exactly. I really want to just withdraw all the money out and pay the federal and state taxes on it but everywhere I research, I’m reading that that’s an awful idea? The only thing that’s annoying me is this 10% penalty fee. Fidelity gave me an estimate of how much my withdraw would be after taxes are deducted and it’s still double than what I contributed in the past 4 years, so it’s not really a loss.
I just bought a house in 2022 and have 2 kids. My husband is the main provider of the house. But if I could have access to that money since I’m not working, it could help us a lot.
Well, after I left my job, I guess Fidelity was notified and they sent me an email telling me that I have options with this account. I’m not sure if it’s still growing or not. I really don’t know anything about investing. I just knew when I was hired at my corporate job to enroll in a 401(k) for my retirement one day. In the email, the options were 1) withdrawing the money or 2) rolling over the money into an IRA (I don’t even know the difference between that and a 401K). What’s the point of me rolling over the money if I don’t have another job to continue to put money in there?
Anyway, I have thousands of dollars sitting in that account and I don’t know what to do exactly. I really want to just withdraw all the money out and pay the federal and state taxes on it but everywhere I research, I’m reading that that’s an awful idea? The only thing that’s annoying me is this 10% penalty fee. Fidelity gave me an estimate of how much my withdraw would be after taxes are deducted and it’s still double than what I contributed in the past 4 years, so it’s not really a loss.
I just bought a house in 2022 and have 2 kids. My husband is the main provider of the house. But if I could have access to that money since I’m not working, it could help us a lot.