This is my conundrum. I have a bit over $100k and am out of work. I really don't see any hope of finding a job that paid anywhere near what I was making in CT.
My wife has a real good job. We have two young children.
My thinking is this: If I leave it in and wait till I am 65 (fifteen years) the taxes on withdrawal will equal the penalty now, IMO.
I was lucky. I put the money in the money market before the crash and actually made about 3% last year but lost nothing the year before.
I just hate the idea of giving up about 45% of my cash in one fell swoop.
Government’s already thinking about confiscating them soon. Articles on FR last week about this. Basically taking them over, making them a giant pool (fund), 12 trillion, and then as you hit retirement giving you stipends (annuitizing). They wnat the 12 trillion in real money to pay off debts and buy stuff. Nobody needs all their money at once so they figure they’ll have time to earn the interest and pay it back, whatever they spend. They’ll just owe you, they are good for it. It’s like starting social security II, only with your money this time.
And if you’re not working now and don’t think you wil be, it’s the best time to take it out because it won’t push you into a higher tax bracket. Figure they hold 20%, you’ll have 80K as income for the year. Minus deductibles and such and there ya go. Just live really frugally. But at least you’ll have your money out before you may not be able to take it out, or they increase the penalty for taking all of it out.