OT: Vested money

[wlawn]

question. A business I use to work for sold their business. Do I need to roll over or can I cash out my vested money.Thanks in advance.

 

[ILLINOISLION]

Check with the company for the particulars if you haven’t received a communication from them within the next few weeks.

 

[Nitwit]

Are you talking about money in a retirement plan? Chances are if you cash out you will have tax consequences. It’s better to roll over the funds.

 

[wlawn]

ESOP

 

[Nitwit]

You can take a distribution from an esop and pay current income taxes on the funds or roll it over into an IRA and not pay any taxes until you withdraw funds from the IRA. Since an esop is a retirement plan, I would suggest you roll over the funds.

 

[NoVa Lion]

ESOP

You definitely want to roll it out to an IRA. However, having gone thru this back in 2010 the dissolution of the ESOP will take some time. The company I worked for was sold in December 2010, but the ESOP was not dissolved and distributions made until December 2012. Hold up was answering all the questions from the IRS re the dissolution of the ESOP.