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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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401K with old employer
I have my 401K sitting with my old company I left years ago.
What do you do when you leave a company?
I am working Part-Time for a company now, but bc it's part-time and I don't even know if they have one I don't know what to do with it.
Any help or advise would be appreciated. I forget about it, which is so bad... I know. I remember this time of year when I get the letter from my old company.
Thanks! I am clueless when it comes to this stuff and I don't want to be charged with anything to take it out.
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Posted 1/3/20 7:58 AM  |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: 401K with old employer
As long as you roll it into another qualified retirement plan you won't be penalized.
I had one with my old company that I forgot about too  it just sat there and it did earn money in the funds it was in but I wasn't contributing to it anymore so it was better for me to roll the funds into my current 401k with my current company. Easier to manage just one account as well.
Since you work part time you may not be eligible for the new company's 401 k plan but ask them first. If they have one you can join it and the have the old one rolled in.
If not I believe you can put it in a Roth IRA or other retirement plan. I'm not very up on those options but I am sure you can google or ask someone more in the know.
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| Posted 1/3/20 8:47 AM |
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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Re: 401K with old employer
Posted by NervousNell
As long as you roll it into another qualified retirement plan you won't be penalized.
I had one with my old company that I forgot about too it just sat there and it did earn money in the funds it was in but I wasn't contributing to it anymore so it was better for me to roll the funds into my current 401k with my current company. Easier to manage just one account as well.
Since you work part time you may not be eligible for the new company's 401 k plan but ask them first. If they have one you can join it and the have the old one rolled in.
If not I believe you can put it in a Roth IRA or other retirement plan. I'm not very up on those options but I am sure you can google or ask someone more in the know.
Thanks! I can ask my current company now, but have a feeling I'm not qualified.
I really don't know too much about the retirement plan options either, but better start looking into it.
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| Posted 1/3/20 8:54 AM |
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CSK
LIF Adolescent
Member since 9/11 892 total posts
Name:
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Re: 401K with old employer
you can roll it over into an IRA as well.
An IRA is a personal tax deferred brokerage account. Think of it as your own 401k. YOu can then invest in any fund you want and you don't get taxed or penalized unless you take the money out.
Fidelity is pretty user friendly. Plenty of other options too. If you go this route, I'd put it in a few index funds and just monitor it.
I'm bad, I have my 401k for the past 6 years sitting with my old employer, and its rather large since I was there contributing for 11 years.
IMHO, there is no reason to put it with your current employer if you're not contributing there. It doesn't make it easier for you.
Message edited 1/3/2020 9:19:46 AM.
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| Posted 1/3/20 9:19 AM |
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LuckySV
LIF Adult
Member since 10/05 4675 total posts
Name:
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Re: 401K with old employer
Definitely ask your employer. I also work part time and contribute. If for some reason you can't contribute to your job's 401k/403b then roll it over into a traditional IRA. Check out vanguard. They have very low fees.
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| Posted 1/3/20 9:21 AM |
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Bonsai
LIF Toddler
Member since 11/18 463 total posts
Name:
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401K with old employer
The company that we use now for our accounts was able to assist me in getting the paperwork and coordinating with my former jobs to roll them all over to one account. They did all the work, I just signed some papers.
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| Posted 1/3/20 9:45 AM |
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EricaAlt
LIF Adult
Member since 7/08 22665 total posts
Name:
Erica
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Re: 401K with old employer
Thanks all for the info.
Currently with Merril Lynch and I just spoke with them.
She gave me all the options and leaning towards the Roth IRA or traditional IRA.
Problem is I lost money with all the fees of it just sitting there. DH isn't happy to hear this.
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| Posted 1/3/20 9:51 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: 401K with old employer
I think if you move to a Roth IRA you are going to pay taxes on the balance that is withdrawn to place in Roth. So make sure you fully understand what you are doing.
I'm surprised fees in the 401K are higher than what you would encounter in other options
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| Posted 1/3/20 10:09 AM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Re: 401K with old employer
Posted by JandJ1224
I think if you move to a Roth IRA you are going to pay taxes on the balance that is withdrawn to place in Roth. So make sure you fully understand what you are doing.
I'm surprised fees in the 401K are higher than what you would encounter in other options
my uncle is a financial planner and when I switched jobs I wasn't eligible to roll over my funds and had to look to switch out to an IRA. He told me to switch to a Roth because you pay the taxes on the balance at the time, but you are not taxed on the future growth. He said a Roth is typically always the way to go
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| Posted 1/3/20 10:14 AM |
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lmcmcl
LIF Toddler
Member since 2/15 484 total posts
Name:
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401K with old employer
I did a direct rollover into a Vanguard Account. If you call Vanguard they will help you. Everything need to be done in certain ways to keep it a direct rollover. Vanguard is known for its very low fees
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| Posted 1/3/20 10:32 AM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: 401K with old employer
It's also ok to leave it! All you you would be doing is moving it to a new financial institution, there's no real point unless you're unhappy with the fees or investment options.
I have an old 401k with the majority of my retirements savings and I've left it alone. I have a new 401k with my current job, but the investment options are not as good, so I just manage 2 accounts. It's not a big deal. Eventually I can combine it, but ther'e's no reason you have to move yours.
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| Posted 1/3/20 11:34 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: 401K with old employer
Posted by NYCGirl80
It's also ok to leave it! All you you would be doing is moving it to a new financial institution, there's no real point unless you're unhappy with the fees or investment options.
I have an old 401k with the majority of my retirements savings and I've left it alone. I have a new 401k with my current job, but the investment options are not as good, so I just manage 2 accounts. It's not a big deal. Eventually I can combine it, but ther'e's no reason you have to move yours.
I agree. Mine made a ton of money just sitting.
But what is this people are talking about fees for having it sitting there?
I don't think I got hit with any fees.
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| Posted 1/3/20 11:52 AM |
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lmcmcl
LIF Toddler
Member since 2/15 484 total posts
Name:
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Re: 401K with old employer
Posted by NervousNell
Posted by NYCGirl80
It's also ok to leave it! All you you would be doing is moving it to a new financial institution, there's no real point unless you're unhappy with the fees or investment options.
I have an old 401k with the majority of my retirements savings and I've left it alone. I have a new 401k with my current job, but the investment options are not as good, so I just manage 2 accounts. It's not a big deal. Eventually I can combine it, but ther'e's no reason you have to move yours.
I agree. Mine made a ton of money just sitting.
But what is this people are talking about fees for having it sitting there?
I don't think I got hit with any fees.
I agree, I do not think you get charged extra fees for keeping the money with a former employer's 401K but especially if it was a small employer, the fees just may be higher than they can pay elsewhere.
Mine was with Paychex. My husband who worked for a very large corp administered their own. He had very low fees, compared to what my fees were.
So when I left my job, I rolled mine over to Vanguard to avoid the high fees. OP's husband may be talking about the high fees in that sense.
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| Posted 1/3/20 3:19 PM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: 401K with old employer
Posted by EricaAlt
Thanks all for the info.
Currently with Merril Lynch and I just spoke with them.
She gave me all the options and leaning towards the Roth IRA or traditional IRA.
Problem is I lost money with all the fees of it just sitting there. DH isn't happy to hear this.
I rolled mine into an IRA at Merrill and it’s doing really well.
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| Posted 1/3/20 7:41 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: 401K with old employer
I use Etrade. Rollover IRA.
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| Posted 1/4/20 8:53 AM |
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hmm
Sweet
Member since 1/14 7993 total posts
Name:
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401K with old employer
When I left a job a few years ago, you were only allowed to keep it in that companies account a certain amount of time. I would check to make sure its still actively growing or just laying dormant. make sure they didn't transfer it to another type of account.
GL
Message edited 1/4/2020 12:30:50 PM.
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| Posted 1/4/20 12:28 PM |
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