403b
I am retired now but had a 403b plan in which there is $23,000 just sitting (I will not embarrass myself and tell you how long it has been sitting there!). I do not know what to do with it or how to do it. I’d love to pay off our car which would give us $560 back in our pocket each month but something tells me that would be a tax penalty nightmare.
Terry Says
If you are older than 59-1/2 and now longer employed by them, you can withdraw the money without penalty — but the amount you withdraw will be added to your ordinary income taxes and you’ll pay tax at your marginal rate. So don’t spend all your money because you’ll need some to pay the taxes. In fact, when you do the withdrawal, you should ask them to withhold at least 20% for taxes.
