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[Kristin Meredith]

Sadly, I don't have time for all of your gracious replies. I need to submit my choice nlt 10/13.

I truly appreciate the feedback.

Then roll it into a 401k.  If you decide you want to do something different later, then you will have the same penalties if you did it now.  I would suggest using a dated fund in the 401k plan.  Surely, there should be someone within the HR office to provide some guidance or point you to the people that advise their 401k plan to provide you with assistance very quickly and free.

Agree 100%

[Bar-B-Lew]

btw, I am a trustee for my company's 401k plan so I have a little experience

[MSOLSON]

+1. Roll it into a 401K. Since you have a short time line, consider putting everything into PIMCOs Income Fund (PONDX) - Morningstar 5 star rated. Then when the dust settles, diversify based on your individual risk tolerance. If unsure, get a financial advisor. Good luck!

[DE]

I believe if you roll in directly into a qualified plan, whatever vehicle it is, they will not withhold anything. If the dispersement comes to you first as a check, then they will hold the required amount.

ADDITION COPY AND PASTE FROM IRS.GOV

Why roll over?
When you roll over a retirement plan distribution, you generally don’t pay tax on it until you withdraw it from the new plan. By rolling over, you’re saving for your future and your money continues to grow tax-deferred.

[Chokma]

I have been retired for about 20 years.  I rolled my pension into a 401K and have been very pleased with the results.  I am of the school that thinks deferring tax payments is a good thing.  Also, in today's climate regarding "tax reform" I would wait until things settle a bit before increasing taxable income.  Good luck, I know this stuff can be unsettling.

[Bar-B-Lew]

Yes, if you roll into a 401k plan there should not be anything withheld for taxes when the retirement valued is rolled over.

[hughver]

I did not see your age but if you are over 59 1/2 you can roll it over directly into an IRA without penalty or tax being withheld.

[Bobitis]

Thanks for all the replies.

I opted for the 401K and hope I didn't screw up the paperwork.

The cash out woulda put a huge dent in paying off my mortgage. That would have been sweet too (5 years from now and no mortgage).

Oh well...

[MN-Smoker]

Just seeing this thread now.
The 401k was definitely the right move for now.

Keep in mind the 401k is just a tool, it is not an investment.

So if you have money in a 401k, you can invest it into fixed rate investments or stocks, bonds, or my favorite Exchange Traded Funds (ETF's).

ETF's have the lowest fees and provide great diversity.

Annuity would only be the option if you want a set amount of cash being paid to you monthly.  If you are already being taxed at a high rate on your income, you probably don't need the additional cash coming in.  Annuities are usually chosen when you need a set amount a month for paying monthly expenses.