employers are liable if they approve 401k loans and then lay you off
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Never put all your eggs in one basket (or company). Laid off or not, make sure you keep your accounts, investments away from the greedy hands and prying eyes of BAC & ML. Maintain that as your personal policy.
Get your money outta that bank! I rolled mine straight into T Rowe Price (great investment firm). Was very easy, made call to T Rowe and they handled everything. Fedex'd me a couple forms to sign. Done. Investment performing better now. Do not allow that garbage institution to profit from your money. They screwed you. Return the favor.
You're absolutely right concerning the age 55 IRS rule 72(t) exception. I also work for the bank and have been quite stressed regarding the never-ending layoffs and low morale because of this. Thinking I would have to wait until age 59 1/2 to withdraw from my 401K without being hit by the 10% early withdrawal penalty was also stressing me out since I am not quite there yet. However, doing a little research over the last few weeks took away that stress. I am over age 55 with 20+ years at BAC. I also qualify for a little known rule of 75 perk that applies to former Nationsbank associates which helps supplement medical insurance, albeit not very much. I am not so stressed anymore, however it doesn't make sense for me to leave without a severance package. That day is coming. I have no doubt. Hang in there everybody!
If you have a 401k loan balance, you will need to pay that balance off or you get your slammed with taxes on the unpaid balance
You can leave it where it's at...roll over into another 401k if you already have another job or roll into traditional IRA. These are pre tax funds so a Roth IRA would not be advised as you would be taxed immediately. Really depends on age...since I am older I opted to roll over to IRA. I do know if you leave it with boa it's extremely restrictive...my money not theirs but I will tell you that you must be showing as severed before boa/ml will do anything. Hope that helps....good luck!
I believe you only have 2 options - take it or leave it.
If you're age 55 or over - retired, fired, quit - you could start withdrawing from it without penalty, but still subject to federal income taxes. You can't escape taxes even after death.