Starbucks Baristas: The daily grind
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My 401k disappeared? (self.starbucksbaristas)
submitted by subaruforesters
Hi everyone, I quit Starbucks a while back and was told then that my 401k money would just stay in my account. I've been searching around here and see that that's not true and I was definitely supposed to do something to move it somewhere else. Yesterday all the money was withdrawn and the balance is zero so my question is, does anyone know where the money is and if I can get it back? 😭
DaemonTargaryen2024 5 points 6m ago
The law allows employers to close a former employees 401k depending on the balance.
If >5k they generally can’t close it.
If <5k but >1k, they can roll it over to an IRA in your name. You’re free to transfer that IRA elsewhere.
If <1k they can cash it out and send yoh a check (this is a taxable event, including 10% penalty if you’re under 59.5.
For #3 If you want to avoid taxes and keep it in the retirement space, you need to do an “indirect rollover” which is taking the gross distribution and placing it into an IRA. Cash the check first, then make an ACH transfer to an IsA for the gross distribution, and remember you need to replace the tax withholding that came out, using your own savings.
Code it as a rollover not a contribution. You have 60 days from the original date of distribution to do this.
https://pbllp.com/dont-be-forced-out-of-a-401k-from-your-former-job/
https://www.investopedia.com/ask/answers/08/distribution-traditional-ira.asp
If >5k they generally can’t close it.
If <5k but >1k, they can roll it over to an IRA in your name. You’re free to transfer that IRA elsewhere.
If <1k they can cash it out and send yoh a check (this is a taxable event, including 10% penalty if you’re under 59.5.
For #3 If you want to avoid taxes and keep it in the retirement space, you need to do an “indirect rollover” which is taking the gross distribution and placing it into an IRA. Cash the check first, then make an ACH transfer to an IsA for the gross distribution, and remember you need to replace the tax withholding that came out, using your own savings.
Code it as a rollover not a contribution. You have 60 days from the original date of distribution to do this.
https://pbllp.com/dont-be-forced-out-of-a-401k-from-your-former-job/
https://www.investopedia.com/ask/answers/08/distribution-traditional-ira.asp
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