transfer it....you don't even say your age so I can't give you hard numbers...but if you assume a 10% return and 30 years until retirement then for every 1,000 you don't roll over it's 33,000 less you have at retirement. Think about that...you take 1,000 now and you have to work an extra year when you're in your 60's. Is it worth it???
2007-01-30 12:20:10
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answer #1
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answered by digdowndeepnseattle 6
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In 99% of cases , Yes you should.....you're changing jobs and the new one doesn't have a 401? ..something like that?
No matter what, keep that money socked away... you'll pay a penalty if you lose the "retirement" status....plus you'll lose the TIME it took to save it ( one thing you cannot replace)....
If you're not exactly sure how or where or why you should roll it into an IRA, go to Fidelity's web site get a phone number...a rep will tell you how easy it is do do, and how YOU can handle all the investment choices from then on..( and you won't be limited to 10 or 20 funds or programs)..you'll be free to make that money work and make it into a Future ( yes, with a capital "S".)
Good luck
2007-01-30 20:22:11
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answer #2
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answered by jebediabartlett 6
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There are many variables involved in this decision. Assuming you no longer work for that company, you may have the option to leave the money and let it work for you. I am retired and I have not moved my 401 because the company allows it to remain and they have great funds with good track records. I can trade regularly on the website. If your investment choices in that 401 are poor, then you definitely should move it out. Vanguard or Fidelity are two excellent recommendations, they will guide you on the transfer- do NOT have the check made out to you. They have a large number of low-cost funds to invest that money in. Another reason to move 401's is if you worked for several companies and you have several 401's in different places. Combining them makes very good sense and simplifies the challenge of growing the money.
If you'd like to speak with a transfer agent to simply better understand the process, as well as the pros and cons, call Fidelity or Vanguard and speak to them. Their 800 numbers are online and then you'll be able to make a better decision.
2007-01-31 16:51:48
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answer #3
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answered by Anonymous
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it depends on your age, what investment choices are available in the 401(k) etc....generally speaking, the only advantage in leaving it in the 401(k), assuming you're still employed by the plan sponsor, is the ability to borrow against it. there will always be more investment choices outside the plan. if you have several 401(k)s from different jobs, its good to consolidate them all into one rollover ira account
2007-01-30 21:51:13
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answer #4
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answered by ny2fl 2
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