Help with merryl lynch 401k

Can someone please tell me what the boa soon to be scandal means for my 401k that I have with merryl lynch?!

I have already opened another account under td bank just waiting for my direct deposit to start going there before I close my boa account.

I wanted to take out all my money in the 401k but couldn't unless I do a hardship but if I did that then the government stays with like 30%!! And it's not much to behind with it's like 15k... I wish I could take it out so I can save it for a house and just start over but I get the feeling that they will get to it before I d, even though the person I talked to sAid my money is protected.

Can some please give me any kind of info? I don't know much on this other then it feels like I'm going to get seriously screwed.

You would have to open another 401k with TD and you can then roll over (transfer) your money in the 401k without losing any money or paying any fees. Just keep the money in a 401k as you can take it out to purchase a home. I am not too sure about the penalties for withdrawal to purchase a home.

Your best bet is to talk to someone with the new bank and let the professionals advise you. And usually to roll this kind of account over you should o ly have to sign a form or two and they will handle it for you.


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Originally posted by air101
Can someone please tell me what the boa soon to be scandal means for my 401k that I have with merryl lynch?!

I have already opened another account under td bank just waiting for my direct deposit to start going there before I close my boa account.

I wanted to take out all my money in the 401k but couldn't unless I do a hardship but if I did that then the government stays with like 30%!! And it's not much to behind with it's like 15k... I wish I could take it out so I can save it for a house and just start over but I get the feeling that they will get to it before I d, even though the person I talked to sAid my money is protected.

Can some please give me any kind of info? I don't know much on this other then it feels like I'm going to get seriously screwed.

edit on 24-10-2011 by air101 because: (no reason given)

I talked my husband into taking out our 401K back in February, I saw this comming last year and finally got his attention in feb. We took the 30% loss because i convinced him 70% is better then zero and that is where it is heading. Between failed stimulus bank loans, and the mass amount of seniour wanting their 401K`s that they have worked hard for all their 30-40 years of working life and desreve it, Bit the markets dont really have it situation. Get it out if you can seriously, also empty yoru checking and savings, I wouldnt leave a dime in the bank right know for anything, we been paying bills with money orders, everything is empty when it comes to financial system with us.

reply to post by air101


If you're ok with paying taxes on it now you can roll it into a Roth IRA - this will give you some freedom for saving after tax dollars and eventually pulling the money out to purchase a home.

The good thing about a Roth IRA is that you are only taxed on your regular income and you make contributions post tax. This means you are not taxed on gains to your IRA.

Just FYI I have earned my Series 7 and 63.

You will not have to pay an early withdrawal fee for making a first time home purchase, but you are going to get taxed either way. Roth IRA is the best type of sheltered account, imo, because the way it's taxed. (If you manage your IRA and make good investments you will not pay a tax on capital gains!)

Thank all of you for replying!

How safe is td bank to do a 401 with them? I really wanted a community bank but none are close by. I don't mind paying some kind of reasonable tax fee but 30% is just ridiculous! I know I won't get taxed on the money If I use it to buy a house or business but I'm just not ready for it, well my credit score anyway... So there is a strong chance that I may lose all my money?

I can't stand how the credit system works. I been working at the same place for 7 yrs and have no debt at all. Yet they still don't want to give me a loan over 2 credit cards back in my high school days and AT&T all of them had been paid yrs ago. Since then I never wAnted any credit cards since I got screwed back then and cause of that I don't have much history and the little that I did wasn't good. Why can't they look at my car payments and rent?! I've paid off 2 car loans, no repo or late payments and now I'm close to paying off my 3rd. I don't want a damn credit card! Just a loan for a house, why can't I be trusted just like these banks have been blindly trusted!?

What's a series 7 and 63?

The Series 7 and 63 are certifications required to work in securities/retirement accounts/etc.

You're going to be stuck with a tax no matter what if and when you decide to withdraw this money. Whether it goes to another 401k or some form of IRA because it was all a pre-tax contribution you are liable to pay the government their share (or more honestly, the government is being nice and giving you a share of what they consider theirs.)

You should really look at the Roth IRA if you are moving your retirement account. You take more control in a Roth IRA and have the potential to pay less tax than with a traditional 401k, but you do not get the employer contribution.

There are some caveats for purchasing a home both with 401k and IRA that you should look into. You also have the option of borrowing against the account, wherever you move it, and paying the loan back + interest. (the rate of interest is determined by the average profitability of your 401k, I believe, and goes back into your 401k to make up for lost earnings)


ETA: Those credit card problems should be removed from your credit report after 7 years. If you are still having issues with them after that time I would recommend contacting the lender for an explanation. If you are unsatisfied or unable to have the reporting agency remove them from the report you should file a complaint.

Here's a site on how to proceed with a complaint should this be the case:

www.ftc.gov...

reply to post by TinkerHaus


Thank you for the info! I have borrowed from my 401k before and paid my self back not someone else that was great..

They may have been removed since it's been paid and well over 7 yrs, what's killing me is the lack of credit now. By doing a Roth do I have to pay to open it? I don't mind paying a fee just not 30% but at this point it seems better than nothing like the lady above said. If I was to roll it over what's the minimum I can put in? I want to keep my jobs 401k since they match up to 6%. I just want to pull out still save the money in a Roth as you mentioned so I don't lose it all and just start over.

Your 401k should be ok with Merril Lynch. You might want to take a look at exactly what funds your money is invested in and change as needed.

I wouldn't move away from the employer account with their 6% contribution.

If you wanted to move a portion of your account you would still be liable for tax on the withdrawal amount. There are a lot of options for a Roth IRA depending on who you go through - things like minimum balance, frequency and amount of contributions, etc.. So if you go this route shop around and get yourself a good deal. Not all banks are equal!


Good luck navigating this hellish topic.

reply to post by air101


Not many people know this and I'm sure my wife would spank me on the pooter repeatedly if she knew I said any of this, but she also knows I'm rebellious and will help out any fellow human... especially at the expence of corporate/government greed. My wife works for a 401k/Retirment firm and discovered under certain circumstances you are able to take out a "loan" on your 401k (which we just finished doing for help on a down payment for our first home purchase). By taking out a loan against your 401k you incure no hardship/governement fees, the only thing you have to pay is the monthly payback of the loan (which is really reasonable... we took out 10g and pay 50 bucks a month for the next 30 years).... great thing about this is you pay interest to yourself.

reply to post by air101


The 401k is the dummest thing you can invest in unless you get controll. I too had the merril account. I was let go cause i organized union meetings to take down Valero in iowa. Anyway, even though it was a Roth 401, they still bent me over. My advise to you is to get out now. Everyone should take their 401k's out asap. Take the loss. At leist you will have something left. It is possible you will have nothing. The markets right now are running on fake money and fake profits. It will all drop soon. Remember the power mongers want a one world curency and will keep on going in that direction. If you think they will convert your dollars to glomeros one for one, your silly. Just my opinion. I felt really good getting some of it back.