Saturday, April 18, 2009

No 401 k


I just roll over my 401k to a financial planer. There is about 10k in it. I will keep half on the Traditional IRA account. I am cashing the other half. Why ? I need to pay couple of credit cards. Combined they are less then a thousand dollars. I have an utility bill for another 1k that has been dragging for months, this will give me more room for saving in the coming months. The balance will go into my emergency fund which has $100 today.
For the taxes I will take care next year, I will be in the 25% tax bracket. I may roll some money back by the end of the 60 days limit to minimise the taxes. For the penalty, I know is 10%, I may be able to avoid it.