I just lost my job. Can I get some suggestions on what to do with the 401k money I left @ my previous job?

Answer 1

You can transfer it to a traditional IRA at Scottrade.

Answer 2

The first thing you need to do is get another job, unless you can get by on unemployment for the time being.

Concerning the 401k? While employed usually the company pays for the employees administration fees for the 401k. After termination, the costs are usually paid by the former employee. The costs usually are 3-5 %.

The best thing for you to do is to transfer the 401k to a rollover account. Many banks would handle this for you.

If you have any trouble with it, contact me and I can probably find someone in your area to help from the company I work with.

Hope this helps.

Answer 3

I would tread carefully on this. You can very easily have it transferred into another 401(k) through your new employer. Your H/R department would be able to guide you in the right direction for that, as they would have all the access information for the Company's Retirement Fund Broker. If you don't have a job right now you can wait a little bit, but bear in mind that after a while you will be noticing fees being taken out. You could look for a financial advisor in your area to set your investment portfolio up for you. This will help you transition your funds into an investment vehicle that will address your specific goals. If you do see a Financial Adivsor, I would recommend one that does not neglect to focus on your debt and one that can clearly tell you how much you will look to need when you retire at your desired age and what your annual growth rate would need to be in order to obtain that goal.
Remember the 401(k) with your prior employer really isn't with that employer. It is a contract they have with a Broker, so it may not need to be transferred if your new employer has the same Broker (which would be sweet!). Unfortunately, you will quickly realize that the money your former employer was going to match, will not be matched. They generally do not match 100% of their obligation up front; its usually spread out over 4 years. Hope this helps. Good luck out there with the job hunt! Maybe take a few days off from looking too, cause the fall snap coming in this year is starting to look nice. Take Care.

Answer 4

If the money amount and your length of service meet the minimums, you can leave it your former employer's 401k plan until you wish to transfer it or withdraw it.

If you ask that it be transferred directly into an regular IRA, you won't be able to transfer it into a new 401k at another employer. That shouldn't be a problem, since an IRA at a brokerage or mutual fund company would probably give you more investment options that a typical 401k plan. I would chose a discount broker who doesn't charge annual maintenance fees and one that offers a broad selection of no load mutual funds that you can purchase with no transaction fees..

Answer 5

Are you allowed to leave what you put there in the same IRA without being able to add additional funds?

The same thing happened to me. I just left it there and am allowed to switch the funds I HAVE there already around anyway I want to, I just can't add additional funds (and obviously my ex-employer isn't going to be adding anything more to it either).

Usually the funds you earn in the different "plans" available thru your 401k wind up paying more than what you would get at your local bank. (Not always though...you have to decide what's best for you obviously.)

If you can't (or don't want to) leave it there, I would suggest rolling over your vested amount to an IRA at your local bank then. You should be able to do that without penalty.

But don't just take it out and use the bucks now obviously, or you'll be taxed BIG time and penalized for doing so (unless of course you are retirement age).

Good luck.

Answer 6

You can roll it over into an IRA at any bank or financial institution so you can keep contributing to your retirement.
Or you can leave it where it is, and roll it over to your new 401k when you get a new job.
The money isn't left with your company per se - it's left with the financial institution who manages your company's funds.

Answer 7

A lot depends on how desperate you are to have money to live on. If you can get by, roll it over into an IRA. If you cash it in, you will pay penalty and taxes.

Answer 8

Roll it over in to an IRA.

Most financial institutions offer IRAs.

ie....Banks, Brokerage Houses, even H&R Block.

Answer 9

Use it to continue a new 401k when you find new employment.

Answer 10

I would use it as a security backup plan in case i don't find another job right away. But if you don't care for that, just buy a nice camera ha ha.