Do they have to let you rollover your 401k to a new company?

Question

If you quit a job and the new company has a 401k, so they have to accept your 401k from a previous employer or can they deny it? Any links would be appreciated.

Answer 1

It depends on your new employer's plan document. If your employer is saying they do not accept rollover funds, you can ask them for a copy of the "Summary Plan Description" which is a government mandated easier to read document that describes the provisions of the plan. It will clearly state whether or not rollovers are permitted into the plan. It is very rare any more for your new employer not to accept rollover funds from a prior 401k because generally it is beneficial to your new employer's plan to have more dollars. The more money your employer's retirement plan has, the better deal they can get with the 401k provider. If your new employer's 401k plan does not accept rollovers, don't fret! Simply open up a Rollover IRA with a company (I prefer Vanguard... low fees, easy to use, no sales people bothering you!) At somepoint you may get another job with a company whose plan does allow for rollovers and you can move all of your money into one plan.

Answer 2

Not a good way to go. Open a "self directed" IRA and ask for a "direct transfer".

Discount brokers like Schwab & Fidelity are good choices. Or Mutual Fund companies like Vanguard and T. Rowe Price.
Some of the "Full Service" brokerages are also "OK"... just much more costly.

Good luck!

Answer 3

No, the new company doesn't have to allow it. They would probably incur managment fees for the funds that you roll over. Some companies allow it, some don't.

You can roll it into an IRA at a mutual fund company like T. Rowe Price.

Answer 4

Your old employer needs to let it go but your new employer should (but doesn't have to) accept it. Usually with smaller amounts of $$ they don't want to accept it. If it is a good size account ($10k+) then you can give it to a broker or manage it yourself. I like to manage my own money but you may not. Any broker anywhere will love to accept your money, although some have minimum $$ requirements.

Answer 5

you should communicate with an investment adviser and that they might inform you the final place to place your funds good now. I paintings for a credit union and our investment branch is giving loose portfolio comments to help human beings settle on the final place for his or her 401k's.