Can You Close a 401k account completely?

[uhhuh]

I have been thinking about this for a while.

I work for a large company that matches contributions to my 401k.

I am starting to get the feeling that there will be a major correction in the market real soon. I have no confidence in keeping my money there in any capacity.

I also don't want to continue to contribute to the great casino that seemed to have fueled the selection of the chimp.

I'll take the tax hit. I don't care. The chimp says it's my money, right? It's vested. Can I just take it all and stop contributing?

The web site for the plan offers little help. Any ideas?

[Worst Username Ever]

1. Not while you work there.

Move it into the stable-value account option of your investment elections, if you have one adn feel that way, although I do not recommend it. But yes, while you work there, the money stays there.

[uhhuh]

8. Well that might be better

I don't want to quit yet. I'm just irritated that I have to essentially be "taxed"(he,he how about that for a talking point?) to support a rigged system.

Grrrrrr!

[Skittles]

2. I think you get taxed an extra 10% or something like that

man, I was gonna start contributing again if Kerry won - my account has been dead as a doornail since the initial Bush slide. I cannot believe people actually voted for that incompetent f***.

[shoelace414]

3. you would probably have to quit, but other than that

if you want it out of the market, you can move aroudnyuor money to government bonds.. or if yoy really want it out of the market, you can put it in an IRA and take no tax hit.

but leave it in there

[JuniperLea]

4. you should be able to...

roll it over into an ira... i did last year. that way you have more of a choice in how it is invested. or if you want to keep it open, there should be a guaranteed interest account within your 401k plan that would be much safer than keeping it all in stocks, bonds and mutual funds.

i liquidated my after-tax stocks in october and bought a house.

[uhhuh]

9. Ira may be the way to go.

Thanks!

[The Spirit of JFK]

5. Short answer, yes...It depends on what kind of 401k it is...

You will most likely have to pay some sort of sales tax or penalty for early withdraw on whatever shares haven't matured to "free" status yet (ones you can withdraw with no penalty),

You should be able to get a breakdown from the person who administers your 401k program.

[DS1]

6. Yes, you can withdraw from your 401k

You'll probably have to go to some website of the company that's holding it and download a legal form you must fill out and mail in.

That's where you can check off if you want to pay taxes now, or later. Either way, you'll be double taxed, taxed as you get the money, and taxed again for next year's income tax.

It's ugly, but I for one know that it sometimes has to be done.

/still missing 50% of his savings due to shitty job market

[Hobarticus]

7. Yes. Did it myself.

I had a small company and was able to talk direct with the company's plan administrator. They weren't happy about it, but that's how it goes.

Honestly, I wish I hadn't done it. I'd rethink that.

[Kolesar]

10. You should be able to shift investments to 401k "fixed income" funds

They would also call it "guaranteed return funds". You can probably do it with a phone call to the fund management company.

Then you don't have to do any other paperwork or rollover, or risk a penalty.

[DoBotherMe]

11. I cashed out my IRA last March when

the market rebounded ... it was a very empowering moment for me. I'm with you, I was done with the casino.

[KC21304]

12. If your company is matching, that would be a very bad idea.

I would think that over very carefully.

[uhhuh]

13. Thanks for all your great answers

I have some thinking to do now. Any other suggestions are welcome still.

Even though it seems like it's "free money" since there is a match given and taxes are taken after the contribution, and I know I will be taxed for the whole amount of my pay without it, I feel like I am at the mercy of the plan administrator as to what my labor goes to support.
There are a lot of investments in the plan that I don't agree with. Having any money in the market at all lends support to the whole corrupt system.

If I wanted to make money in the market now, I could do well to invest in weapons systems, but I don't support that. I could buy govt debt, but I know it's only going to get bigger, and I don't want to bail the chimp out anyway.
I don't want somone else deciding that it's ok with me to harm the nation and the world and kill many innocent people because I'll get a decent return from it.

I want out, or if I can't get out, I want my contribution to go to companies that could make a positive difference in the world.
I'm just not that good at figuring out the best way to do it.