Solved: Can cash out my 401k, plan that terminated by my employer?
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Can cash out my 401k, plan that terminated by my employer?

 
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Level 15

Can cash out my 401k, plan that terminated by my employer?

Yes, that is your option. However, you can NOT cash out tax or penalty free. That fact that it was terminated is not an exception to the tax rules. 

You other option is to roll it over to an IRA (or another employer's plan), tax & penalty free and continue to have tax deferred growth.

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Level 15

Can cash out my 401k, plan that terminated by my employer?

Yes, that is your option. However, you can NOT cash out tax or penalty free. That fact that it was terminated is not an exception to the tax rules. 

You other option is to roll it over to an IRA (or another employer's plan), tax & penalty free and continue to have tax deferred growth.

View solution in original post

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New Member

Can cash out my 401k, plan that terminated by my employer?

How do I access it?
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Level 15

Can cash out my 401k, plan that terminated by my employer?

Access what?
The money? Contact the 401k plan administrator. Usually when a plan is terminated, they contact you and ask for your decision on what you want done with the money.

Where do you enter it in Turbotax (TT)? The plan administrator will send you a form 1099-R. In TT, enter the 1099-R at "Retirement Distributions". or type form 1099-R in the find box
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