Question: what happened to the other $11,000 ($28 - $17)?
Did they take monies from their 401(k)s or from their IRAs?
- It applies only to company sponsored plans, like 401(k)s.
- It applies only to a plan sponsored by the company that let you go. That 401(k) at a former employer doesn’t qualify.
· You have to withdraw the money in the same year you are let go. You cannot stagger this over a period of years.