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Need advice on closing retirement account.

14 years ago

I usually lurk on the craft pages, but I have a problem and someone suggested I try here. My DH's company is closing and the employees are being given the balance of their retirement savings plan. DH did not contribute to this account so he is looking at this as free money, a few thousand; but I feel there will be penalties and taxes to be paid on this money. Who do I need to talk to about this? A financial advisor or a tax advisor? I was told we will have to pay a 10% penalty for early withdrawl (which I think is rediculous since the company is the one closing the account not us) but I was also told we could pay a 28% tax on this money when we do our taxes next year, I won't have 28% left next year. Any advice? Where do I turn for assistance.

Thanks in advance for ANY help.


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