Question on 401k withdrawal
I recently moved to a new company that suggested I should withdraw the 18.5k that I put into my 401k (with Microsoft matching) and “re-deduct” it from my remaining paychecks to receive the company match again. The customer support at fidelity wasn’t sure if this is allowed or not and was wondering if anyone had experience with this. YOE: 2 TC: ~330k
Never heard of this.
2 years of experience and 330k? How? What is your role?
Guessing a PHD, probably working in California. Still looks a bit too high tbh
Yeah, it is very high! Hence curious. Im a masters and My TC is half.
Sounds dicey. Might open yourself up to penalties and taxes. The IRS is not your friend and they watch that tax fence like hawks. Good luck!
Sounds fishy to me. What company does your current company use for their retirement plans? What company is your old 401K parked at?
My new company uses Paychex and my previous account was with fidelity
Don’t do it. It sounds like too much work and a bit fishy to me. I’ve worked at many corporations and have never heard of such a thing - not saying you can’t do it legally, but there’s not that many weeks left in the calendar year, so you’ll be working against the clock to get it done. If you are interested, consult an accountant. If you decide not to pursue it, I’d actually keep the money with Fidelity - much better than Paychex (or roll it into an IRA).
I wouldn't risk doing this. There's only one month left of the year, you'll likely only get 1-2k match tops. If IRS decides to look into this it'll take weeks to months to resolve. I recently had to submit to appeal penalties. Maybe a day's worth of time, but spread out over 6 months. Not worth it for the amount you're dealing with to the ratio of how much your time is worth.
I’d be getting the full 9.25k but that definitely is sound advise. Thank you.
They don't prorate? That's generous of them. Haven't seen many companies do that.
That's not how it works.