My old employer is urging ex employees to cash out our retirement plan. The money is no longer growing and I have at least 20 years before retirement....
I would like to take a % of the money and roll it over to an existing 401k but also take a % as a lump sum cash payment. My question is will I only pay taxes and penalties on the $ I cash out - not the $ I roll over to my 401k?
If yes how much taxes and penalties would I pay? How do I figure this out?
I don’t feel there is much benefit in keeping the money until I retire. I have at least 20 years to retire and when I calculate how much money this retirement money translates to if I were to take it as Monthly installments upon retirement, it’s only about $165 per month.
I have more benefit to rolling some into my 401k so it can grow and taking a % as cash and paying off debt.
Is there anything I need to worry about?
