what to do with a 401k account? reinvest in new employers 401k account, or rollover?

Question

recieved a notice from old employer that i need to remove money in a 401k account soon, i have a new 401k account with my new company,should i roll it over, or is there a better plan? what should i do i'm 51years old and will need the retirement income.the amount is only $60,000.00 anyone had this problem before? Thank you

Answer 1

Whether or not you can roll the old 401K into the new one depends on the new employer's rules.
I would look at getting into an IRA. There is great debate as to whether the Roth or the traditional IRA is better, and this is because it depends on each individual financial situation. Call a reputable financial advisor, Schwab, Fidelity, H&R Block (1.800.HRBLOCK - ask about discounts on free tax prep), Smith Barney, or any number of others. Call more than one company, ask lots of questions, and find someone you are comfortable with. It is more about the individual advisor than about the company he or she is with.
DEFINITELY don't take a check and buy a big-screen. There can be major tax consequences if this isn't handled properly, so get on the ball and find an advisor BEFORE you sign or do anything.
Let me know if I can be of more assistance.

Answer 2

Typically it's best to have the money under your complete control rather than putting it into an employer account. The only exception to this would be if your employer has a stellar 401k which would allow you access to excellent funds that you would not be able to buy on your own (because they're closed or the entry limit is too high).

Since this is rare, I'd recommend doing a direct rollover to an IRA at Vanguard. It's an easy process, just make sure that they send the money directly to your brokerage, not to you. If they make the check out to you they are required to keep 20% for taxes and you either have to make up that money when you deposit it (within 60 days) or it is considered a taxable event. Better to just avoid the problem all together.

Good luck!

Answer 3

Don't pay a financial advisor. $60k isn't enough money to justify their high fees.

Open an account at a low-cost online brokerage firm. Once you sign the papers, have the distribution go directly to the new account (direct rollover, trustee-to-trustee transfer).

Invest the money in a low-cost ETF like the Vanguard VIPERs.

You may be able to rollover to your current 401(k), but it depends on whether your new employer has decided to allow these kinds of rollovers. But the fees you'll pay in a low-cost ETF will likely be less than the fees you'll pay in your employer's new 401(k).

Answer 4

Rollover

Answer 5

Rollover

Answer 6

With your age in mind, rollowver into a traditional IRA.

Don't let the company write the check to you directly or they will withhold tax. Visit your bank and setup the account then contact your former employer to move the funds and they will handle the rest.

Step quickly.

Best wishes,

pup

Answer 7

once you're taking funds out of your 401(ok), you will ought to pay income taxes on it. besides, the IRS imposes a 10% penalty. So once you're in the 25% tax bracket, taking $10,000 out of your plan could value you an further $3,500 in taxes and outcomes.

Answer 8

www.Schwab.com , you can ask questions of a rep right there online or if not comfortable inquire at your local bank for their investment rep and they can give you all the options... Good Luck

Answer 9

you cannot put it into the new 401k
you can
leave it where it is now
OR roll it into a Roth or traditional IRA