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MontanaXVI · 04-07-2006, 04:37 AM

lemme get in on this with some questions and notes of my own.

I worked at a company for 12 years and put a little bit into their 401, through Merrill Lynch, I quit the company back in Novemer and got a letter a few months later that since my balance was XXX but below XXX I had a few choices, I was allowed to leave the money with ML, and they would roll it into a traditional IRA and charge me about $40/year as a custodians fee or something (don't read that and jump up shouting and raising hell that is just the term that comes to mind it may have been called something else)

Or I could roll the money into another financial instutions IRA plan, or take the cash out which they would take 20% of and send it to the IRS for taxes, then I would get taxed anywhere from 10-20% more for eary withdrawl.

I chose to have the money rolled into an IRA at ING Direct where I have one of their savings accounts, and from what I read (this is where I would like the input) I could leave the money for X amount of years and then roll it into a Roth which would then allow me to have some limited access to the money without all the penalties of early withdrawl. Was I reading this right or did I just misunderstand?

04-07-2006, 04:37 AM	#5 (permalink)
MontanaXVI Junkie Location: Go A's!!!!	lemme get in on this with some questions and notes of my own. I worked at a company for 12 years and put a little bit into their 401, through Merrill Lynch, I quit the company back in Novemer and got a letter a few months later that since my balance was XXX but below XXX I had a few choices, I was allowed to leave the money with ML, and they would roll it into a traditional IRA and charge me about $40/year as a custodians fee or something (don't read that and jump up shouting and raising hell that is just the term that comes to mind it may have been called something else) Or I could roll the money into another financial instutions IRA plan, or take the cash out which they would take 20% of and send it to the IRS for taxes, then I would get taxed anywhere from 10-20% more for eary withdrawl. I chose to have the money rolled into an IRA at ING Direct where I have one of their savings accounts, and from what I read (this is where I would like the input) I could leave the money for X amount of years and then roll it into a Roth which would then allow me to have some limited access to the money without all the penalties of early withdrawl. Was I reading this right or did I just misunderstand? __________________ Spank you very much