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Can I draw a lump sum payment from my 401k after my last day of employment when

  1. profile image44
    xupe49dxbposted 8 years ago

    Can I draw a lump sum payment from my 401k after my last day of employment when I retire?

    this is an employer profit sharing plan set up for guaranteed income 100% vested.

  2. cwright88 profile image57
    cwright88posted 8 years ago

    You'll probably get hit with a fee.  Not to mention the taxes.

  3. Boomer60 profile image60
    Boomer60posted 8 years ago

    Usually you have to wait to draw your lump sum. Your employer needs to file the paper work to the investment company and they in turn send your check minus Federal Taxes. You are responsible for your state taxes.

  4. profile image49
    401K Recoveryposted 7 years ago

    If you are retired and over the age of 59 1/2 it is possible to take a lump sum from your profit sharing.  Often times it depends on how the plan through your employer is written; however in most cases, the answer is yes.  Please consult with tax professional regarding any taxes that may be owed.

 
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