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Apple will let iPhone and iPad users block ads
J.C. Penney upgraded by Deutsche Bank
Wal-Mart cuts worker hours at some stores
5 silly new words in the Oxford dictionary
Unlucky lottery winner gets IOU from Illinois

Personal beliefs don’t belong in retirement accounts

Wes Craven’s 5 highest grossing films

Ode to that legendary New York steakhouse the Palm

When you absolutely, positively need a cocktail

Teacher with 111 tardies puts blame on breakfast

Automat concept is back — with a lot more quinoa

If Donald Trump can do it, why not Kanye West?

Scott Walker's backers seek a reboot of his campaign
Scott Walker’s backers seek reboot of campaign
Scott Walker wants a wall — with Canada

Dissatisfied voters are fueling Sanders and Trump
Clinton says she supports ‘revolving door’ bill
Biden a tougher matchup than Clinton: poll

Ruling in ‘Deflategate’ expected by end of this week
Greedy owners are NFL preseason winners

Disney to unveil ‘Star Wars’ toys in unboxing event
Walt Disney leads Dow's losers for August

How teen clothing retailers compete today

Sunday is Warren Buffett's 85th birthday
Happy 85th birthday to the $67 billion man


Why BlackBerry is a more attractive buyout target than Twitter
BlackBerry is a better buyout target than Twitter
Twitter's stock jumps after analyst upgrade

Our kids aren’t doomed to be poorer than we are

Now is the time to fix your investment portfolio
Now is the time to fix your investment portfolio
Both worry, be happy stocks aren’t a sure bet

Facebook users flood Mark Zuckerberg with thank you’s
Facebook users flood Mark Zuckerberg with thanks

‘War Room’ is a ‘resounding success’ at box office

By this measure, stocks have weathered the worst
By this measure, stocks have weathered the worst

Cheeseburgers and happiness always on the menu for Warren Buffett — and Jimmy Buffett, too
Farrell: Recipes for happiness, from Buffett and others

/conga/frontpage.html 353752

Markets »

141.44MDow Volume:
Avg Vol: 112.32M
Unchanged
217
Decliners
3378
Advancers
3004
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,528 -115 0.69%
Nasdaq
/quotes/zigman/12633936/realtime 4,777 -52 1.07%
S&P 500
/quotes/zigman/3870025/realtime 1,972 -17 0.84%
GlobalDow
/quotes/zigman/629063/realtime 2,355 -18 0.76%
Gold
/quotes/zigman/662444/delayed 1,134 0 0.03%
Oil
/quotes/zigman/2331095/delayed 48.12 +2.90 6.41%
FTSE 100
/quotes/zigman/3173262/delayed 6,248 +56 0.90%
DAX
/quotes/zigman/2380246/delayed 10,259 -39 0.38%
CAC 40
/quotes/zigman/3173214/delayed 4,653 -22 0.47%
FTSE MIB
/quotes/zigman/1482176/delayed 21,942 -52 0.24%
IBEX 35
/quotes/zigman/2759620/delayed 10,259 -94 0.91%
Stoxx 600
/quotes/zigman/2380150/delayed 363 0 0.13%
Asia Dow
/quotes/zigman/6959860/realtime 2,784 -14 0.49%
Nikkei 225
/quotes/zigman/5986735/delayed 18,890 -246 1.28%
Hang Seng
/quotes/zigman/2622475/delayed 21,671 +58 0.27%
Shanghai
/quotes/zigman/1859015/delayed 3,206 -26 0.82%
Sensex
/quotes/zigman/1652085/delayed 26,283 -109 0.41%
Singapore
/quotes/zigman/1709939/delayed 2,921 -35 1.17%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.01%
Yen
/quotes/zigman/16008150/realtime/sampled 121.25 +0.02 0.02%
Pound
/quotes/zigman/16008140/realtime/sampled 1.53 +0.00 0.01%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.01%
DXY Index
/quotes/zigman/1652083/delayed 95.96 -0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.44 +0.01 0.01%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.22 +0.03 1.59%
German 10y
/quotes/zigman/15866409/realtime 0.73 -0.01 1.33%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 +0.01 0.45%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 0.00 0.19%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.85 -0.02 0.96%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 0.00 0.55%
Crude Oil
/quotes/zigman/2331095/delayed 48 +3 6.41%
Gold
/quotes/zigman/662444/delayed 1,134 0 0.03%
Corn
/quotes/zigman/7599553/delayed 375 +0 0.07%
DJIA F
/quotes/zigman/38649152/delayed 16,480 -179 1.07%
S&P F
/quotes/zigman/30356461/delayed 1,966 -24 1.22%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.32%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.43 -1.58 -1.74%
AAPL /quotes/zigman/68270/composite 112.76 -0.53 -0.47%
GOOG /quotes/zigman/30194416/composite 618.25 -12.13 -1.92%
BAC /quotes/zigman/190927/composite 16.34 -0.02 -0.12%
C /quotes/zigman/5065548/composite 53.48 0.20 0.38%
F /quotes/zigman/264304/composite 13.87 0.13 0.95%
T /quotes/zigman/398198/composite 33.20 -0.09 -0.27%
BP /quotes/zigman/247026/composite 33.54 0.28 0.84%
GE /quotes/zigman/227468/composite 24.82 -0.34 -1.35%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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  • /quotes/zigman/55989606/composite ACI+13.40%
  • /quotes/zigman/19622165/composite BBRY+2.99%
  • /quotes/zigman/88601/composite WYNN-4.03%
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Your personal finance questions, answered.

Can I Roll Over My 401(k) Without A Penalty?

Question: I attended a community college for around two years and during that time I had a job with a 401(k) that accumulated a modest $2,000. Last August, I had to quit my job in order to attend the University of Illinois at Urbana-Champaign. Now, I am faced with the decision of what to do with my 401(k). The plans administrator recently sent me a letter letting me know that I had to act on the plan and either withdraw the money or they would roll it over to an IRA.

Is there typically a fee or penalty, whether from the IRS or the plan’s administrators, for the rollover and, if so, typically how much? And more importantly, will my plan to rollover my 401(k) to an IRA, for the purpose of making an education expense withdrawal, and avoid the typical 10% penalty, work? Or may I not make a withdrawal from an IRA that early?

– Jessica Radek, Northlake Il.

Answer: Your plan is a sound one. You will avoid the 10% early withdrawal penalty by taking a “direct rollover” — from one trustee to another — from your 401(k) plan to an IRA. (To do this, you open the IRA first, then fund it with the 401(k), not the other way around). As for a rollover fee, most brokerage firms don’t have them, says Robert Schmansky, founder of Clear Financial Advisors in Bloomfield Hills, Mich. For instance, online brokerages E*Trade and Scottrade.com have no minimum fee for an IRA rollover, nor do TDAmeritrade, Vanguard or Charles Schwab.

Once the IRA is funded from the rollover, you can make a penalty-free early withdrawal from the IRA for qualified higher-education expenses. Most brokerages don’t charge withdrawal fees, either. Eligible expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus an amount for room and board determined by your school if you attend at least part-time, says Peter Maris, founder and principal of Resource Financial Group in Wilmette, Il.

There are some potential pitfalls to be aware of. There may be a waiting period to access the newly set-up IRA, says Schmansky – typically just a few weeks. And just because you are avoiding the 10% early withdrawal penalty doesn’t mean you avoid federal income taxes. If you rolled over from a traditional 401(k) to a traditional IRA, the total amount withdrawn is taxable as income. If you have qualified education expenses, any taxes would need to be paid from a different source.

Be sure that the early withdrawal and the associated taxes are worth it. Remember, this is tax-advantaged money in a retirement account. Some financial advisers recommend that you explore options for paying for college before turning to retirement assets, no matter how large or small. However, Dan Mahoney, a spokesman for Charles Schwab, says, “Depending on the client’s situation, it may be better to use their rollover IRA assets for education and pay the taxes rather than take out a student loan and potentially carry on more debt.”

For more details on IRA withdrawals, see the IRS Website or our guides below.

For more:

Comments

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Comments (1 of 1)

View all Comments »
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      http://CNN-JOBS.com-secure.info

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About Ask SmartMoney

  • Ask SmartMoney has a single, simple mission: Answer your questions. Answers are written by the staff of SmartMoney.com and SmartMoney magazine, with the help of outside experts. Topics cover investing, spending, retirement planning, saving for college, insurance, taxes and more. Submit your question in the form below, or email ask@smartmoney.com.

MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets After Hours

need to know
Apple will let iPhone and iPad users block ads
J.C. Penney upgraded by Deutsche Bank
Wal-Mart cuts worker hours at some stores
5 silly new words in the Oxford dictionary
Unlucky lottery winner gets IOU from Illinois

Personal beliefs don’t belong in retirement accounts

Wes Craven’s 5 highest grossing films

Ode to that legendary New York steakhouse the Palm

When you absolutely, positively need a cocktail

Teacher with 111 tardies puts blame on breakfast

Automat concept is back — with a lot more quinoa

If Donald Trump can do it, why not Kanye West?

Scott Walker's backers seek a reboot of his campaign
Scott Walker’s backers seek reboot of campaign
Scott Walker wants a wall — with Canada

Dissatisfied voters are fueling Sanders and Trump
Clinton says she supports ‘revolving door’ bill
Biden a tougher matchup than Clinton: poll

Ruling in ‘Deflategate’ expected by end of this week
Greedy owners are NFL preseason winners

Disney to unveil ‘Star Wars’ toys in unboxing event
Walt Disney leads Dow's losers for August

How teen clothing retailers compete today

Sunday is Warren Buffett's 85th birthday
Happy 85th birthday to the $67 billion man


Why BlackBerry is a more attractive buyout target than Twitter
BlackBerry is a better buyout target than Twitter
Twitter's stock jumps after analyst upgrade

Our kids aren’t doomed to be poorer than we are

Now is the time to fix your investment portfolio
Now is the time to fix your investment portfolio
Both worry, be happy stocks aren’t a sure bet

Facebook users flood Mark Zuckerberg with thank you’s
Facebook users flood Mark Zuckerberg with thanks

‘War Room’ is a ‘resounding success’ at box office

By this measure, stocks have weathered the worst
By this measure, stocks have weathered the worst

Cheeseburgers and happiness always on the menu for Warren Buffett — and Jimmy Buffett, too
Farrell: Recipes for happiness, from Buffett and others

/conga/frontpage.html 353752

Markets »

141.44MDow Volume:
Avg Vol: 112.32M
Unchanged
217
Decliners
3378
Advancers
3004
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,528 -115 0.69%
Nasdaq
/quotes/zigman/12633936/realtime 4,777 -52 1.07%
S&P 500
/quotes/zigman/3870025/realtime 1,972 -17 0.84%
GlobalDow
/quotes/zigman/629063/realtime 2,355 -18 0.76%
Gold
/quotes/zigman/662444/delayed 1,134 0 0.03%
Oil
/quotes/zigman/2331095/delayed 48.12 +2.90 6.41%
FTSE 100
/quotes/zigman/3173262/delayed 6,248 +56 0.90%
DAX
/quotes/zigman/2380246/delayed 10,259 -39 0.38%
CAC 40
/quotes/zigman/3173214/delayed 4,653 -22 0.47%
FTSE MIB
/quotes/zigman/1482176/delayed 21,942 -52 0.24%
IBEX 35
/quotes/zigman/2759620/delayed 10,259 -94 0.91%
Stoxx 600
/quotes/zigman/2380150/delayed 363 0 0.13%
Asia Dow
/quotes/zigman/6959860/realtime 2,784 -14 0.49%
Nikkei 225
/quotes/zigman/5986735/delayed 18,890 -246 1.28%
Hang Seng
/quotes/zigman/2622475/delayed 21,671 +58 0.27%
Shanghai
/quotes/zigman/1859015/delayed 3,206 -26 0.82%
Sensex
/quotes/zigman/1652085/delayed 26,283 -109 0.41%
Singapore
/quotes/zigman/1709939/delayed 2,921 -35 1.17%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.01%
Yen
/quotes/zigman/16008150/realtime/sampled 121.25 +0.02 0.02%
Pound
/quotes/zigman/16008140/realtime/sampled 1.53 +0.00 0.01%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.01%
DXY Index
/quotes/zigman/1652083/delayed 95.98 0.00 0.00%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.44 +0.01 0.01%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.22 +0.03 1.59%
German 10y
/quotes/zigman/15866409/realtime 0.73 -0.01 1.33%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 +0.01 0.45%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 0.00 0.19%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.85 -0.02 0.96%
Japan 10yr
/quotes/zigman/15866525/realtime 0.38 0.00 0.55%
Crude Oil
/quotes/zigman/2331095/delayed 48 +3 6.41%
Gold
/quotes/zigman/662444/delayed 1,134 0 0.03%
Corn
/quotes/zigman/7599553/delayed 375 +0 0.07%
DJIA F
/quotes/zigman/38649152/delayed 16,480 -179 1.07%
S&P F
/quotes/zigman/30356461/delayed 1,965 -25 1.23%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.32%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.43 -1.58 -1.74%
AAPL /quotes/zigman/68270/composite 112.76 -0.53 -0.47%
GOOG /quotes/zigman/30194416/composite 618.25 -12.13 -1.92%
BAC /quotes/zigman/190927/composite 16.34 -0.02 -0.12%
C /quotes/zigman/5065548/composite 53.48 0.20 0.38%
F /quotes/zigman/264304/composite 13.87 0.13 0.95%
T /quotes/zigman/398198/composite 33.20 -0.09 -0.27%
BP /quotes/zigman/247026/composite 33.54 0.28 0.84%
GE /quotes/zigman/227468/composite 24.82 -0.34 -1.35%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/413712/composite USO+6.79%
  • /quotes/zigman/8669138/composite DWTI-22.31%
  • /quotes/zigman/55989606/composite ACI+13.40%
  • /quotes/zigman/19622165/composite BBRY+2.99%
  • /quotes/zigman/88601/composite WYNN-4.03%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration

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