How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29568
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

What are the cashing out profit sharing plan rules?

This answer was rated:

I quit my old job and I was 80 percent vested. Can I cash out or do I have to send it to my new job? Who would I contact to do either of these options? I owe my work for back insurance, so do they just keep it? What kind of penalty do I get for cashing out?(I'm only 24) Thanks a bunch!

You may do either - cash out vested portion of your retirement plan or roll it over to a new employer's retirement plan or roll it over to the IRA account.

To cash it - you need to contact the administrator of your retirement plan - please be aware that distributed amount likely will be your taxable income plus additional 10% early distribution penalty will apply.

To roll the funds over - you need to contact the administrator of the new plan and provide the information about your current plan - contacts, last statements, etc. You will be asked to fill transfer forms and they will do the rest. The direct roll over will not be taxable event.

Any details? - Just Ask!

Lev and other Tax Specialists are ready to help you
Customer: replied 9 years ago.

Can they keep it because I owe back health insurance?

No unless you agree - the employer may not garnish your funds in any other way - but - to sue you and only based on the court order.

If the employer withholds your debt - you may file a complaint to Department of Labor for improper wage garnishments.

Please find in this publication provided by the DOL a brief description of wage garnishment laws -