Help. Looking for someone who knows a lot about dividends.
In my current company 401K, I can choose to have company stock dividend paid out as Cash - this means that I only pay taxes on the dividend, and even though the 401K is tax-deferred money, I do not have to pay the 10% Penalty on the dividend payout.
My company also allows me to roll my 401K over to any qualified IRA. This means I can roll it to Schwab or other similar account.
I want to roll my money to another account, and then invest in stocks which pay out high dividend, and then have the dividend sent to me in the form of a check. I called Schwab and asked them about this, and they said the following: They had to collect the dividend in my account, then I would have to request a payout, and the payout would be hit with the 10% penality -- and also would be taxable at a higher rate than the dividend tax rate.
I am looking for any type of IRA account that I can roll my money into that will pay out the dividend to me without the 10% penality. It is possible for my 401K to pay out the company dividend without the 10% penality, so I am thinking that other plans should be able to do the same. My company only pays out about a 2% dividend. I want the cash flow for other investements such as real estate, LPs, etc.
I am hoping that someone out there knows of a brokerage or financial planner that allows for stock dividends to be sent back to the investor before the 10% penalty.
Thanks in advance,
Need Cash Flow to make more Cash Flow...
AI
