Talk of The Villages Florida - View Single Post - Advice pls
Thread: Advice pls
View Single Post
 
Old 12-17-2020, 10:11 AM
dougawhite dougawhite is offline
Senior Member
Join Date: Sep 2015
Posts: 362
Thanks: 276
Thanked 179 Times in 112 Posts
Default

A 401K has one advantage over an IRA if you were 55 or older when separated from your last employer you can
cash out from the 401K without incurring the extra 10% income tax penalty
(obviously it would be taxable income, but not penalized). You can't do that if you convert the 401K funds to an IRA.