Roll it over to an IRA

The penalties will make the entire deal not worth the little benefit you will gain from it.
In response to Cassie (I think) Mark only recommends cashing out the 401K in the case of foreclosure. And then only if you are 100% committed to staying out of debt forever.

Mark has always recommended to roll it over

because with penalties and taxes, he says it is the equivalent to borrowing money at 30 or 40% to pay down debt. If he has ever recommended cashing it in, I have never heard it or for what reason.

When I left my last job, I was fully vested and rolled over about $22K

At my previous employer

I had a 401K plan which they contributed to. Since I was there over 5 years, I was fully vested. I have the option to either roll it over into an IRA or cash out. If I cash out, 20% will be deducted for federal tax and 5% for state tax, plus I’ll have to pay a 10% penalty when tax time comes. So I am trying to decide what to do. We could use the cash right now to finish up some projects or put towards debt, but I am not sure if it’s worth it. The amount of the plan was not a huge amount, but still significant – about $1700.
Any thoughts on what Dave would recommend or what you all would do?


I bought some supplies to extend an existing circuit in my basement, and run a totally new one. I also made a full map of what circuits on my breaker box route to which lights and outlets. So know I know which circuits are barely used and can be added to…

In answer to your question earlier this week end

Zero based budget items I include other than the basic 4 walls, and payments to the cc.


Feed for the critters—average out the year and then add a few bucks so you aren’t stuck with hitting your emergency fund for hay next year.
Medical, for us== co-pays, rx’s and such
Regular vet visits,– vaccinations, specialty feed etc.
Car insurance—we pay by the 6 months it’s a lot cheaper that way
Sinking Funds: I have a cap set on each of these for the balance I want to achieve
Emergency vet visits
Household repair/replace
Eye glass/dental fund
Travel—it’s a no-no, but we do it anyway and it’s the last one funded
Farm equipment replace/repair/build
Truck repair/replace

And when we were still adding animals I had a “bird fund” as well—that was for new birds and equipment.
Plus any annual dues we had.
So sorry about Agatha, that explains why I didn’t hear from you yesterday. You know she knew she was loved and at least she had got to come home to see her “Mama” before she passed. That was a very good thing.

I finished setting up the Snowball spreadsheet

Now working on the zero based budget. I wasn’t as focused as I should have been on either house cleaning or the budget since I lost Agatha on Sunday (Agatha was a 10 year old Icelandic Sheep who had been blind for the past 3 years) – she got chilled in the rain about 2 weeks ago and just never regained ground even though I did treat with antibiotics and supportive care etc. I’m grateful her passing was peaceful, no signs of struggle so I know she passed gently and is now running in verdant fields with clear eyes and back to her stately self. She was the Grande Dame of my flock. Her final resting place will be between two of the 3 big pecan trees in the front of the property which are always cool and shady in the heat of the summer.

Well we did better on not eating out this week

and stayed home snuggled up near the first fires in the fireplace of the winter. It got down right nippy here in ok the last few days and I’m told more is headed our way. Luckily the company brought ds in from the field for this next two weeks or he’d be climbing a gas plant right now in the El Reno, OK area, which is where the snow and ice hit. The company, as I have said before, is very family based and they decided—before the bad weather notices—that ds should be home for Thanksgiving week and his birthday week the next week. Then the bad weather notices hit and they had him go ahead and turn in his rental car too, saying if it gets real bad in December they won’t be sending him back until it clears up.
They also agreed to purchase him a fire resistant parka for when he goes back. Thank goodness, his blue Smurf suit isn’t very warm! He had been wearing so many layers under it he looked like Charlie Brown all bundled up to go out in the snow.
Both men got in about 10 hours each overtime again last week, I think Best Buy is doomed within the next 2-3 weeks. But no guarantees right now.
Dh got the Christmas tree out for putting up this coming weekend and checked the lights to find out the power surge we had last winter burned out ALL of the bulbs on the strings. So new cheap lights were purchased. So we are all ready to decorate this coming weekend.
I’m still plugging along cleaning and culling as I go. Finished up our third week of super cheap meals for dh and I while ds was gone. So that helped the budget greatly.
So basically this week was same old, same old.

Good grief, I’d have a fit

I have cards, none with a yearly or monthly fee. Have no fee on my checking account either. Asked when I opened a savings account if there was a fee and if I maintain a certain amount there isn’t, make sure I never go under that. I know I don’t follow all the rules all of you do but do avoid those fees like the plague so if Jan or anyone else can tell you how to get rid of them, do it.
One thing can never understand, hear so many financial advisors tell you to go with credit union instead of bank. I belong to a credit union but don’t do much with them, at least at mine their fees are not better.

No it won’t mention it as the annual fee

in the interest disclosure it will simply say something about the average daily balance and that amount, once it is added in is part of your average daily balance.

And why are you worried about a credit score? Read the book. Keeping the account open and paying them $99 a year for something you will probably never need is ridiculous. You have 30 days to protest the fee and if they just started adding it then they can’t keep charging you. Call them and close the sucker.

I did

– and I didn’t (and don’t, upon review) see any mention made that the annual fee is included in the interest calculation. Which is why I’m growling about it.

They keep charging the fee even if the account is closed. At least, that’s what their disclosure says. How does it affect your credit score if you close it?

I had chicken soup last night – feel like grilled cheese snackwiches with green tomatoes – if I can find any!