I established a new 401(k) account with my previous employer. I made a total of $600 in contributions ($100 x 6).
I don't want to keep this 401(k). First, 401(k) is not my preferred investment strategy. Second, the fund manager has me earning an absymal 0.01% (I have savings instruments better than that!). Third, if I could liquidate this money I could put it to a short investment that would give me a better return.
Does the IRS have any "small amount" rules that would work to my advantage? Or do I just go ahead and pay the penalty?
EDIT: Everyone's situation is unique. Answers are rarely simple. I invest in hard assets, while my spouse in investment accounts. I established this account to take advantage of the employer match, presuming I would be there for some time. Turns out, that wasn't the case. Since I don't invest in soft accounts, I want to liquidate this account.
I can't transfer to my spouse. I can't keep it where it is. I can roll it over to an IRA, then convert to a Roth IRA, but the fees would likely eat it up before the 5 year waiting period for no-penalty withdrawals kicks in. I don't have more than 7.5% AGI unreimbursed medical expenses, so I'm seeing no way to get around the 10% penalty.