ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Retirement

Roll that 401(k)

Updated on September 16, 2017
ScottBirmingham profile image

Scott is a CFP®, ChFC, CLU, CAP who has been providing financial guidance to families for over 17 year.

What to do with your old 401(k)?

Should I leave it where it is....

Should I roll it over to an IRA.....

What I recently did...

"So I just rolled over my 401(k) from my previous employer, to my Rollover IRA- getting all my bones in one place.

So I had the option of leaving my401k where it is, but in my case the investment options were limited or I could have cashed it in but I'm only 13 years old and would have paid a pre- 59+1/2 withdrawal penalty and income taxes.

I do have a prior 401(k) which I left alone because it has a unique Guaranteed Interest account, paying a nice rate, that is hard to beat outside of a company retirement plan. (Just an FYI)

So by moving into an IRA, I can invest in CD's, Bonds, Mutual Funds, ETF or Stocks. That's a lot of choices. My main dog house is Fidelity which provides tools to research Mutual Funds, for instance, to help me build a portfolio or compliment what I already have. We can discuss the basics of allocation in a later post, but for today we are focusing on moving your dough.

For simplicity, do a Direct Rollover from your 401(k) or 401(B) which would involve you speaking to your 401(k) provider. Your other option is a 60 Day Rollover which would be paid directly to you. This is a hassle. Taxes will be withheld so you will have to make up the difference when depositing it. Forget it !

Go Direct Rollover route.

It will probably take a couple of weeks and might involve you making a couple of follow up calls to your provider as they are not quick to give up the cash. :)"


    0 of 8192 characters used
    Post Comment

    No comments yet.