anyone of you ever done a direct 401k rollover like it says in that article? it says "The above example assumes the 401k retiree is less than 59 and 1/2 years old and has to pay the 10% Early-Withdrawal Penalty fee. However, if you are older than 59 and 1/2, this 10% early-withdrawal penalty fee does NOT apply to you. The above example also assumes a Local State Tax rate of 7% (varies from state to state) and a Federal Tax Rate of 30% (20% Withholding Tax + 10% Federal Income Tax)" did you have to pay the 10% early withdrawal penalty fee?
are you planning on rolling over or withdrawing? the 10% fee only applies to withdrawals made prior to you being 59.5. to my knowledge, there is no way to get around this. afterall, an IRA is a retirement fund, which means the company with which you have your IRA plans to invest these funds until you retire. i have rolled over an ira without any fees whatsoever. it was a major headache, however, but it needed to be done since i changed employers.
