Question on 401k withdrawal

Nov 26, 2018 16 Comments

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

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TOP 16 Comments
  • Amazon / Eng
    Microgle

    Go to company page Amazon Eng

    BIO
    USA
    Microgle
    2 years of experience and 330k? How? What is your role?
    Nov 26, 2018 6
    • Apple / Eng
      cho Chang

      Go to company page Apple Eng

      cho Chang
      Double promos are a thing?
      Nov 26, 2018
    • Worked on a small task force team that reported directly to a CVP and had regular interactions with an EVP, Satya and even Bill sometimes. Super high visibility + I guess I did well since I got the double promo. I would’ve loved to stay and continue on the team but some personal matters came up and decided to change jobs to accommodate for those things.
      Nov 28, 2018
  • Never heard of this.
    Nov 26, 2018 0
  • Amazon
    IdiotSDE

    Go to company page Amazon

    IdiotSDE
    That's not how it works.
    Nov 26, 2018 0
  • 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.
    Nov 26, 2018 2
  • Adobe
    Downbeat

    Go to company page Adobe

    Downbeat
    Sounds fishy to me. What company does your current company use for their retirement plans? What company is your old 401K parked at?
    Nov 26, 2018 2
    • My new company uses Paychex and my previous account was with fidelity
      Nov 26, 2018
    • Adobe
      Downbeat

      Go to company page Adobe

      Downbeat
      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).
      Nov 26, 2018