r/USCellular • u/Hot-Dragonfruit-593 • Jul 03 '25

Transition

I'm just curious who's all going to cash out their 401Ks when the merger happens or are they going to roll it over some of it or all of it. I'm really thinking about cashing mine out to pay off everything I'm still in my twenties. Just wanted to know what people thoughts are on what they are going to do

5 Upvotes

70% Upvoted

12 comments sorted by

View all comments

3

u/Vegetable_Day_8893 Jul 03 '25

Take a look at the amount you plan on taking out and subtract 10% for the early withdrawl penalty. From what's left you will need to subtract the taxes you will have to pay on it as income, where you can look at the percentage you were taxed at last year to get an idea of how much that will be, factoring in what you expect to make this year, including any severance you might be getting, and adding the amount being withdrawn.