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Jan. 9th, 2008
Ask Dr. LJ
Jan. 9th, 2008 05:33 pmHey Dr. LJ (economy degree)
I've got this IRA with my bank. I opened it when I switched jobs and dumped my paltry 401(k) money into it. It was worth about $500.
Today, the bank started charging "maintenance fees" and pulled $40 out.
So, here's the deal. Obviously, I need to do something with the money. It will never earn enough to offset the fees. In the past, I've been told that I can't roll this cash into my current 401(k) -- and consolidating my retirement savings this way is what I'd really like to do.
I don't want to just cash it in because first they tax you 20% for early withdrawal and what's left over gets taxed again as income which probably means I'd get nothing out of it.
What can I do with this stupidly small sum of cash?
Thanks
Tom
I've got this IRA with my bank. I opened it when I switched jobs and dumped my paltry 401(k) money into it. It was worth about $500.
Today, the bank started charging "maintenance fees" and pulled $40 out.
So, here's the deal. Obviously, I need to do something with the money. It will never earn enough to offset the fees. In the past, I've been told that I can't roll this cash into my current 401(k) -- and consolidating my retirement savings this way is what I'd really like to do.
I don't want to just cash it in because first they tax you 20% for early withdrawal and what's left over gets taxed again as income which probably means I'd get nothing out of it.
What can I do with this stupidly small sum of cash?
Thanks
Tom
Ask Dr. LJ
Jan. 9th, 2008 05:33 pmHey Dr. LJ (economy degree)
I've got this IRA with my bank. I opened it when I switched jobs and dumped my paltry 401(k) money into it. It was worth about $500.
Today, the bank started charging "maintenance fees" and pulled $40 out.
So, here's the deal. Obviously, I need to do something with the money. It will never earn enough to offset the fees. In the past, I've been told that I can't roll this cash into my current 401(k) -- and consolidating my retirement savings this way is what I'd really like to do.
I don't want to just cash it in because first they tax you 20% for early withdrawal and what's left over gets taxed again as income which probably means I'd get nothing out of it.
What can I do with this stupidly small sum of cash?
Thanks
Tom
I've got this IRA with my bank. I opened it when I switched jobs and dumped my paltry 401(k) money into it. It was worth about $500.
Today, the bank started charging "maintenance fees" and pulled $40 out.
So, here's the deal. Obviously, I need to do something with the money. It will never earn enough to offset the fees. In the past, I've been told that I can't roll this cash into my current 401(k) -- and consolidating my retirement savings this way is what I'd really like to do.
I don't want to just cash it in because first they tax you 20% for early withdrawal and what's left over gets taxed again as income which probably means I'd get nothing out of it.
What can I do with this stupidly small sum of cash?
Thanks
Tom