How to handle living off 401K after BK?

[swampwiz]

I am wondering what is the proper course of events to do this. I suppose that the very next day after discharge I can apply for a new IRA (I think it is called a qualified IRA), and then when that is set up, call up the 401K administrator and ask for a direct transfer. Then once it has been transferred, I can do as I please and withdraw per my wishes.

Now as I understand it, there is the 72t rule for the 401K that allows someone who does equal payments until age 59-1/2 to not pay the 10% penalty - with the one time option of suspending the payments, with no distributions from then on allowed until age 59-1/2. I guess that I would need to think very carefully about just how much I would want to take out, figuring out how much it would grow over the years, etc. I probably would have the chance to do some meaningful work in my field of computer programming in the future, if the field would ever get good again.

Any comments?

[nerves]

I am sure about the bk side of things but I have a few pointers for you to check out before transfering to an IRA. The first would be to verify what expenses you are paying for being invested in the 401k such as: Is the ER paying all the admin fees? What are the investment management fees? Are there any other expenses being paid for having your funds in the 401k? The reason I bring this up is because fees for an IRA can be more costly than what they are in a 401k. Most 401ks allow for annuity payments (you can set up regular distributions, one-time distributions, etc). Please do some research before making the move. Make sure you get information up front on the fees for the IRA. Each IRA has a different fee structure depending on the product. I work in the industry. Don't let the "name brand" investments fool you into thinking you are getting a better deal. Wish you the best of luck.

[nerves]

Sorry - meant to say I am NOT sure about the bk part in regards to the rollover of funds. My bad