how do you transfer a 401k to a new account?

Question

my husband quit a job because we moved last year and we left the 401k alone. In his new job he is being offered a 401k and I wanted to know how to combine them both and if I do will I be penalized? or have to pay taxes on it?

Answer 1

You can cash out the 401(k) and then deposit it into a new 401(k) (this is called a rollover). You have a time limit of 60 calendar days to move it from one account to the other. You will need to deposit the whole amount of the 401(k) value from old to new or it becomes a taxable event.

Your new 401(k) provider should have an abundance of information on this topic and their customer service representatives will be delighted to help you with the details.

Answer 2

I think if you just contact the new company 401k administrator and give them the details of your old acct (name, soc sec # - any acct#, old company's name and 401k plan#), they can do it automatically for you - no tax effect since it's a direct rollover. no penalties for combining 401k accounts - happens all the time. OR... he can roll it over into an IRA, but if he want access to funds for an emergency loan or something in the future, it's easier to access the funds from a 401k plan if he's under
59 -1/2 yrs old

Answer 3

Some companies let you move an old 401K into their plan, some don't - you'd have to check with the new employer. If not, you can roll it into a rollover IRA. As long as you move it to a qualified plan, you won't pay taxes - just be sure to either have to old plan send the check to the new plan, or if they send it to you instead make sure you get it back in within 60 days.

Answer 4

If you roll the old 401k into the new plan, there are not penalties or taxes. Contact the new 401k administrator - they should be able to assist you with the roll-over.

Answer 5

you need to roll this money into an ira

so contact a mutual fund company...vanguard or fidelity and tell them you wish to roll 401k money into ira money

they will direct you step by step and all will be well

Answer 6

You should first roll it over to a Traditional IRA, then transfer it to the other 401K.

I use Scottrade because they have no fees for this.

Alternately, he can keep it in the IRA at Scottrade and invest in stocks and mutual funds, which are not as limited as most 401Ks.

There is penalty as you are not taking the money out, and you never receive a check. As long as it is transferred between the companies and you don't get it.