Withdraw from 401k? A really tiny amount!

[mmmlb]

Interesting situation (to me at least) with my previous employer's 401k.
I had it rolled over into my current employer's 401k right after I left.

Fast forward a year later and I find out my old employer added $0.04 to my old 401k.
I'm guessing they miscalculated and only found out a year later and decided to add in the money.
I'm not sure how because I thought the account was closed after I rolled it over.

So now I have a 401k with $0.04 in it. The brokerage firm told me that since it's so little, I can't keep it with them. So I can either, roll it over to my current 401k, roll it into an IRA or just take the withdrawal.

Are there any consequences to any of those options that I'm not aware of?
I don't want to roll into an IRA because I already maxed my Roth for this year so that would put me over the limit. I also think it'll be a hassle to try to roll it into my current 401k. I can easily withdraw it from them online but I'm not sure if this is the best way. I would just pay tax and the 10% penalty on the 4 cents, right?

Thanks for any advice/info!

[KTP]

Interesting situation (to me at least) with my previous employer's 401k.
I had it rolled over into my current employer's 401k right after I left.

Fast forward a year later and I find out my old employer added $0.04 to my old 401k.
I'm guessing they miscalculated and only found out a year later and decided to add in the money.
I'm not sure how because I thought the account was closed after I rolled it over.

So now I have a 401k with $0.04 in it. The brokerage firm told me that since it's so little, I can't keep it with them. So I can either, roll it over to my current 401k, roll it into an IRA or just take the withdrawal.

Are there any consequences to any of those options that I'm not aware of?
I don't want to roll into an IRA because I already maxed my Roth for this year so that would put me over the limit. I also think it'll be a hassle to try to roll it into my current 401k. I can easily withdraw it from them online but I'm not sure if this is the best way. I would just pay tax and the 10% penalty on the 4 cents, right?

Thanks for any advice/info!

Everything on a tax form rounds to the nearest dollar, so you would actually enter a zero for all balances and taxes, no worry.

[autoxer]

I don't want to roll into an IRA because I already maxed my Roth for this year so that would put me over the limit.

Rollovers do not count towards your annual contribution limit.

[MonkeyMama]

In addition, $0.04 is too small to issue a 1099, anyway. The others are right. I'd cash it out and forget about it.

[mmmlb]

Thank you KTP, autoxer, and MonkeyMama.
I didn't know any of that!

I will just cash it out and forget it like everyone suggested.

[Guest]

Agree to just cash it out. I had a similar situation (although it was about $30). Sometimes, the funds pay out dividends after you roll it over, that could be where the 4 cents came from (was in my case - one fund paid out a dividend after I already rolled it to my new employer).

I ended up just cashing the check. Because it was a higher amount than 4 cents, I did include it when doing my taxes. It just added $30 to my income, and included an extra $3 (10%) penalty for early withdrawal, but it was worth the $3 penalty to not to have to try and roll it over which was a huge hassle the first time.

[Gailete]

I'm sitting here wondering what it will cost them to send you a check for 4 cents! If you have an on line bank account or they will do a direct deposit to your regular account, it might make it easier all round for you to get the 4 cents by a internet transfer than them writing a check. When I saw the title of this thread my gut reaction was no don't do it, but I thought you wanted to take a tiny amount from your 401K for whatever and that can actually be a very expensive way to get a small amount of funds because of the IRS fees and the need to pay the money back.