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Posted in Retirement
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MB22

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401k conversion
Which is better..keep money in 401k or convert to CDs? Any impact on credit score?

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Wouldn't be any impact to credit score, however, you would probably loose money putting it into a CD.  A CD, depending on the type and term gets you a slightly better interest rate than a savings account.  Whereas a 401k or other retirement investment vehcile is going to get you a better rate of return in the long run.  Also a CD is for short term savings where a 401k is long term. 

If your 401k is with your current employer the only way to get your money is to quit, take a loan (which is usually limited to 50% of your balance), or take hardship withdrawl (which has tax implications and is only for very specific reasons). 

If your 401k is from a previous employer that you no longer work for, the best bet is to roll it over into a IRA or another 401k from a current employer.  You can also cash it out, but there will be tax consequences doing so

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