Ask Dr. LJ
Jan. 9th, 2008 05:33 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
bluegargantuaHey 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
