What do I do with my 401K money after I have resigned from the company providing it ? Is there a time limit ?

Question

I recently resigned from a job I've had 15+ years, do I have to move my money from the 401 Plan into some other account ?

Answer 1

i think you have 30 days to remove it from the current 401k to savings or somwhere else, or have it rolled over into a new 401-k with a new employer. I think thats the time limit, i may be wrong I had to move mine after a job i had for 20 years and i think it was 30 days. just check with the human resources manager they can tell you

Answer 2

If it is invested with a large company like Fidelity, which handles many corporate 401K accounts, speak to them directly and transfer the 401K. You can decide if you want to do an IRA or another type of retirement vehicle. My DH did this when he was laid off due to downsizing.

Ask HR for a rollover account form so you don't pay taxes on the transfer. Make sure the form does not say Withdrawal; it needs to say rollover transfer. Whether or not you have to take the money out of your 401K depends on several factors: Is the company financially solid? Is the company trustworthy? I know retirement accounts are supposed to be kept separate from the rest of the company assets, but look at Enron, etc. If you think it's a better idea, transfer the money into a rollover account.

There is a time limit, and your HR manager have this information.

Answer 3

You don't have to move your money or roll-over into another 401K. The 401K where your retirements funds are will most likely offer you the option to maintain your account. If you want to change then you can always roll your 401K into a different company plan, however, it is not compulsory to change. Just keep track of this current, 15 year old account and continue contributing to it, if you'd like to continue doing that.

Answer 4

Your question is do you have to move it and is there a time limit.

Answer is if your account is over $5,000 you absolutely 100% do NOT have to move it. If you like your investments then by all means leave it in there. Actually in some cases it makes little since to do that (ie if there's a back end sales charge and you're going to incur a front end load where you're moving your money to.) These are the things to investigate...take your time and find the correct investment for YOU!

The only time you will be forced to take your money out (if you're over 5,000) is when you turn age 70 1/2 and no longer employed by the company....but you have to take those withdrawals from IRA's too.

Do your research..take you time.

Answer 5

You can place your 401k money into a rollover account until you decide what you want to do with it. There is not a time limit for it to sit in the rollover account. Also, my experience has been that the company you left from will allow you to leave it there as well, but you will not be able to make new contributions. I have my money in Fidelity...they seem to be okay so far...check them out and congrats on taking financial responsibility for your hard earned dollars!!!

Answer 6

If you have a new employer, and they have a 401K, you can roll over every dime of it into your new account without penalty.

Don't take it out unless you're prepared to get hammered, tax-wise.

Contact your administrator.