Just quit my job, and I don't qualify for my new job's 401k until this summer. I am unable to keep my money in my previous job's 401K plan, so need a "bridge" to put that money in between now and this summer. Any advice? Should I open an IRA and put it in there. Can I then roll that over to my new 401K this summer? Don't want to pay any fees at all. Thanks.
2007-02-12 13:25:17 · 4 answers · asked by nujdawg 3 in Business & Finance ➔ Personal Finance
You don't want a "temporary" IRA. Once your old 401(k) is rolled into an IRA, there is no reason to roll it into your new employer's 401(k). It doesn't matter what options the new plan offers; you will have more choices, more flexibility, and greater control in your own self-directed IRA.
Most financial advisors or planners will assist you with this at no cost.
2007-02-12 16:53:52 · answer #1 · answered by Rob D 5 · 0⤊ 1⤋
You have the answer in your question. Yes roll that amount from your old company into a direct IRA rollover and then when you are able to put it into your new companies 401k roll it back all without taxes.
Just be care full they never put your name on the roll over's instead the institutions that will handle the money.
2007-02-12 21:32:11 · answer #2 · answered by Brick 5 · 0⤊ 1⤋
If you are considering opening an IRA with a brokerage house you can call them and ask questions. Each brokerage house or bank is likely to have different rules on your ability to transfer your IRA to another institution.
Just ask alot of questions and look at several different brokers/banks and their fees before making a decision.
2007-02-12 21:36:04 · answer #3 · answered by velmicro 2 · 1⤊ 0⤋
Ask your bank. They are the ones who would provide this IRA.
2007-02-12 21:29:45 · answer #4 · answered by ttpawpaw 7 · 0⤊ 1⤋