Will I be penalized for rolling my 401k into my bank account, even if I don't use it?
You can but why? Banks are'nt paying any interest to speak of. The idea of a IRA is to have it grow and accumulate some wealth for your retirement. Putting it in the bank for future withdrawals is a no no. You will be hit with some big penaties.
You have better talk with some onewith some finanical experience.
Ditto with foxrun and you may end up paying oddles of state and federal taxes on early withdrawal (because as far as I understand a transfer is the same as a withdrawal) so please seek out financial advice from at least three or four professionals!
Don't roll it into a regular bank account. They don't pay much interest and I would think you'd get stuck with extra taxes even if you don't spend a dime. If you need to move the money due to a job change or not being happy with where it's currently held, you need to roll it into a simiar account. Speak with someone at a couple local banks to see what they offer! Speak with more than one institution though so you make sure what you're told matches and that you get the best deal. If you need the money because of a financial crisis, speak to a professional to minimize your tax and penalties.
If you are under 59 1/2 there is also a penalty of 10%.
In a word "no" you can't do it that way. If you are 59 1/2 yrs or older you will immediately have to pay income tax on it. If you are not 59 1/2 you will pay income tax plus a 10% penalty for early withdrawal.
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