I have a decent amount in my 401k and do not want to lose it. if i quit or get fired then what is the best route to protect my money? thak you!
2007-02-05 22:50:28 · 4 answers · asked by djthommanell 2 in Business & Finance ➔ Careers & Employment
Your money is protected...if you quit or get fired then simply ask for distribution paperwork and take a direct rollover of your money into an IRA. Legally they can't do anything about it...They have plan rules that they have to follow. Get a copy of your SPD and keep it at home. Never throw this away. This is your bible and tells you when and how you can get a distribution from your plan.
2007-02-06 05:34:24 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
yes it will, some jobs offer different types of 401K there is 403B etc but you can keep the money into the same account until retirement even if you don't add anymore to it, you can put it into a fixed account and the money will just collect a small amount of interest, if you are not putting money into it every pay then I wouldn't leave in the high risk category. If you are fairly young you can leave in moderate risk. Now days most companies do have a 401K retirement and yes it will transfer, you may have to go with the company that the new place of employment uses but beware when you close the account with the previous account some do not transfer the funds they will send you a check for the amount then it is up to you to send it to the new company. I did this but I endorsed the check and sent it certified and insured and make sure you call in a few days to make sure that your funds were put in your account. cashing the check and sending it in will cause the IRS to penalize you.
2007-02-06 07:05:10 · answer #2 · answered by kissybertha 6 · 0⤊ 0⤋
No it doesnt. If you want to keep it in a retirement account you need to roll it over into an individual retirement account (IRA). Go see a planner at your local bank or whereever. If you want to take the money now you will be subjected to paying the taxes on it and paying the fines and fees associated with taking it out. It would probably be close to 50%.
2007-02-06 07:00:26 · answer #3 · answered by Bloodsucker 4 · 0⤊ 0⤋
Your 401k belongs to you not your company. The money that's in there now will stay in there unless you take it out. You could transfer to another account if you change jobs, but you don't have to.
2007-02-06 06:59:57 · answer #4 · answered by jingles 5 · 0⤊ 0⤋