Hello! I was lucky enough to be with a company that is currently being bought out and was previously employee owned. I’ve been sent the official amount and need advice!
Background: Mid twenties, wedding and possible home buying in close future, make more than enough to support myself and save ~$1000 per month (I have a bad habit of spending so this isn’t always the case).
Amount from sale: $20k
Options: Transfer to 401k (penalty free), accept cash buyout (penalized by taxes not sure on amount taxed).
Questions:
Should I take the money as cash? I have a lot of big life events coming up and it could certainly help for all the items above.
What is the tax penalty for the cash option?
If I put it in a 401k and need to borrow from it later is this bad?
Ask me any questions!