2007-02-12 07:55:25 · 6 answers · asked by Jennifer H 2 in Business & Finance ➔ Investing
You should find a company to roll it over for you into a self-directed IRA account.
You still can not touch it without a heavy tax penalty, but you would have more options than you do now as to what type of investments you may make using your 401K.
Look in your local telephone book for money managers , or investment specialist or counselors, they will be able to assist you in your roll over.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-02-12 08:03:16 · answer #1 · answered by Skip 6 · 1⤊ 0⤋
You don't need a money manager to roll it over. A mutual fund, like T. Rowe Price or Vanguard can do it for you and roll it into a regular IRA (you can NOT roll it directly into a ROTH IRA) and invest in one of their funds for you.
As to what happens to it when you leave a job. Depends upon the company you used to work for. Some allow you to keep it there until you retire and begin taking out the money, some want you to transfer it to an IRA or a new employer's 401k and will give you only XX number of months to do it.
2007-02-12 08:29:30 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋
It is never advisable to leave your 401(k) with a previous employer. As you are no longer contributing, there is no incentive. Rolling it into an IRA will offer you more options, and much greater flexibility and control. If you like the investment choices within the 401(k), they will still be available to you. You will not suffer any penalties or tax consequences are long as the funds are transferred directly. Most financial advisors will assist you with this at no cost.
2007-02-12 16:23:53 · answer #3 · answered by Rob D 5 · 0⤊ 1⤋
In most cases you can leave it at the old company if you like their choices of mutual funds- if you have over about $5,000 in it currently. You can't add more money to it but it will react to the market and you can move your funds back and forth within your 401K.
If you would like to move it out it is best to roll it over to your personal IRA to avoid taxes.
Or you can get it back as a check BUT after it is hit by significant penalty tax and then you can pay taxes again at the end of the year.
2007-02-12 13:56:06 · answer #4 · answered by Brick 5 · 0⤊ 0⤋
You can "roll it over" to some other type of account...mainly to a Traditional or Roth IRA. If you take the money in cash, you may face still tax penalties.
2007-02-12 08:03:18 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Typically you are fully vested in a 401(k) almost immediately, so all the money is still yours. It's not invested in the company in any way. Why do you think that you "left" it at a job?
2007-02-12 08:00:00 · answer #6 · answered by Thomas K 6 · 0⤊ 1⤋