What are the factors in this on getting my money? I have no job again so I have no rollover. Should I get a IRA can any one give me Expert Advice?
2007-01-23 10:59:49 · 10 answers · asked by Liteyes 7 in Business & Finance ➔ Investing
the Company I sclosing these accounts Sorry I forgot that part.
2007-01-23 11:17:43 · update #1
If you don't need the money then roll it over to an IRA. Go down to your local bank and tell them you want to set up an IRA. They'll help you do that. At the same time, contact your company(s) and ask them to send you distribution paperwork. When you receive the paperwork fill it out, making sure that you request a direct rollover. This will make sure that the check is not made out to you (it will be made payable to the bank with an FBO of your name)and they won't withhold. The check may still be sent to you though...just not made out to you. If it is, walk down to the bank and deposit it into your IRA.
After that..do the research on where you want your money to go longer term. The fact that it's at your local bank in an IRA gives you the luxury of a little time to do the research and not feel rushed. Do online research, read the financial pages of your paper, buy books...learn as much as you can in the next 6 months THEN make a decision.
If you do need the money....don't bother rolling it over...take the hit and request a cash distribution. contact your ex employer(s) and get distribution paperwork. Once you receive it elect cash distribution and send it back. You'll get a check of your balance less 20% withholding. how much you'll owe on the distribution is dependent upon your income level. If it's low enough, the 20% withholding could pay the entire tax (regular and 10% extra tax if applicable). Or it might not.
Expert advice is a misnomer...it's all opinions and no one is an expert.
2007-01-23 12:13:58 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 1⤋
Contact the administrators for each company's 401k and find out what your options are. Many companies will allow you to keep your funds in their plan, even if you no longer work for the company, as long as you have at least $5,000 in the account. If you're satified with the investment options offered, and the management costs are reasonable, there's no need to move the funds.
Generally, however, you're going to have more options available to you if you roll the money over into an IRA. You can set up an IRA with a variety of places (Fidelity or Vanguard are good choices), fill out the paperwork, and have them transfer funds for you.
Be sure not to have your 401K send you a direct distribution. You'll incur substantial penalties if you do this, so be careful that you do not elect this option.
2007-01-23 11:22:38 · answer #2 · answered by Marko 6 · 0⤊ 1⤋
Yes, it's probably better to open a ROTH IRA and roll the money over. But assuming the companies are both stable and profitable, you can also just leave the money there until you have a new job and a new company 401K to roll the money into.
Avoid actually getting a check made out to yourself at any time - you will incur tax penalties. Most brokerages will be able to help you set up the ROTH and roll the funds over without a tax event.
Vanguard and Fidelity are my personal pick for setting up the IRA - they have good selections of low cost funds.
2007-01-23 11:13:05 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If you're not planning to get another job with a 401k plan that you can roll it over to, put it into a Roth IRA. It will be taxed like regular income if you just take the money out. Contact a reputable mutual fund company and they can walk you through it. You can also set up an IRA with a brokerage if you want to pick your own stocks and ETFs (Exchange Traded Funds). That's what I'm planning to do when I get some extra cash.
2007-01-23 11:35:51 · answer #4 · answered by somebody783 3 · 0⤊ 1⤋
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2015-01-27 03:50:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can roll the funds into an IRA rollover. Either thru a financial advisor (like myself) or go thru a do-it-yourself brokerage such as Fidelity or Schwab.
2007-01-23 15:15:48 · answer #7 · answered by lbeachguy2003 1 · 0⤊ 1⤋
Do not roll the money into a Roth. You will have to pay taxes on all that money if you do and you can't use that money to pay for it. That means you will have to get new money (hard to do without a job) to pay for it. Roll them both into a standard IRA.
2007-01-23 13:36:36 · answer #8 · answered by gregory_dittman 7 · 0⤊ 1⤋
Real good stuff! So what you're telling me is that I have to work for a living because my mom didn't mess around on my dad?
2016-03-28 23:21:44 · answer #9 · answered by Anonymous · 0⤊ 0⤋