401K Withdrawal (checkwriting) fees


D

DanielleOM

I received a letter from my 401K that they would now be charging $6.00
check writing fee for any payment from the plan. Off hand I do not know
how often most people with draw from a 401K after retirement, but I
realize if withdrawing monthly this would amount to $72.00 per year.

Is this fee typical of most 401K plans or IRAs?


Thanks

Danielle
 
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J

JoeTaxpayer

I received a letter from my 401K that they would now be charging $6.00
check writing fee for any payment from the plan. Off hand I do not know
how often most people with draw from a 401K after retirement, but I
realize if withdrawing monthly this would amount to $72.00 per year.

Is this fee typical of most 401K plans or IRAs?
My Schwab IRA has no such fee. If you are 59-1/2 or older, I'd suggest
that you rollover some or all of the 401(k) to an IRA.

A 401(k) has a mandatory 20% withholding. Which for those who are
nowhere near that amount for their average rate is just a loan to Uncle
Sam. An IRA withdrawal permits you to fine tune the federal and state
withholding, if any, so you're withdrawing just what you need.
 
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T

Tad Borek

I received a letter from my 401K that they would now be charging $6.00
check writing fee for any payment from the plan

Is this fee typical of most 401K plans or IRAs?

Perhaps that's for using paper checks, and it's free if you do some kind
of electronic transfer?

-Tad
 

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