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Advice on rolling over a 401k

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Kate07
Feel better my little guy!

Member since 5/05

4476 total posts

Name:
Kate

Advice on rolling over a 401k

I am leaving my current job to take a better opportunity. I need to rollover my 401k and am unsure of how to do this. So far I think my best bet is to put it into a "Rollover IRA" until I can contribute to my new employer's 401k plan.

Does anybody know anything about this? Thanks !!

Posted 1/24/06 8:01 PM
 
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MrsJ
I love my Katie Bug

Member since 5/05

11357 total posts

Name:
Kathy

Re: Advice on rolling over a 401k

What I did was I left it with my old company. They didnt contribute to it anymore, but at least the funds I invested in were stil making me money.

Then I had the entire 401k rolled over in to my new 401k.

Posted 1/24/06 8:07 PM
 

dm24angel
Happiness

Member since 5/05

34581 total posts

Name:
Donna

Re: Advice on rolling over a 401k

We rolled over My DHs to an IRA. We made so much more money on it.

Posted 1/24/06 8:08 PM
 

Laura1976

Member since 5/05

5754 total posts

Name:
Laura

Re: Advice on rolling over a 401k

You have to "roll over" a 401K to an IRA once you leave a job. When you are ready to do this, you must liquidate whatever investment it is in. Contact a broker and tell them you are liquidating your 401K and need to open up a rollover IRA. Once you have your account number, contact your company, there is usually paperwork that needs to be completed to liquidate it. Usually they'll send the check directly to your brokerage account. Do NOT cash the check if it is sent to you, you only have about 60 days to deposit it into your new IRA. There's no tax consequenses for this. your old 401K cannot be combined with your new one, and your stocks/mutual funds that you hold in it MUST be liquidated, you can't move them into the IRA.

Posted 1/24/06 8:22 PM
 

mommy2Alex
3 babies for me :)

Member since 5/05

6683 total posts

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Re: Advice on rolling over a 401k

Posted by Laura1976

You have to "roll over" a 401K to an IRA once you leave a job. .



I don't believe this is true. I left my old job over 2 years ago and I never rolled it over. I just don't contribute to it anymore.

ETA - I can still rebalance and switch monies within the plan.

Message edited 1/24/2006 8:33:12 PM.

Posted 1/24/06 8:32 PM
 

MrsJ
I love my Katie Bug

Member since 5/05

11357 total posts

Name:
Kathy

Re: Advice on rolling over a 401k

Posted by mommy2Alex

Posted by Laura1976

You have to "roll over" a 401K to an IRA once you leave a job. .



I don't believe this is true. I left my old job over 2 years ago and I never rolled it over. I just don't contribute to it anymore.

ETA - I can still rebalance and switch monies within the plan.



Yeah I dont know about this. I was able to roll over my 401k last week after about 10 months.

Posted 1/24/06 8:38 PM
 

CathyB

Member since 5/05

19403 total posts

Name:

Re: Advice on rolling over a 401k

Some companies require that you rollover your 401k when you leave, or they will cash you out and send you the check, but you get hit with huge tax penalties. DH & I have always rolled it into one of our IRAs.

Posted 1/24/06 9:33 PM
 

luvsun27
Check out my cool glasses

Member since 5/05

8135 total posts

Name:
Kim

Re: Advice on rolling over a 401k

I believe if the amount is over 5K, you are entitled to leave it within the company plan...you just won't be contributing to it anymore. Once you can add to your new plan...you can roll it over into there, or just roll it over into an IRA on your own. If you contact the company that provides the plan...they will send you the correct paperwork to do so.

Posted 1/25/06 7:00 AM
 

LuckySV
LIF Adult

Member since 10/05

4675 total posts

Name:

Re: Advice on rolling over a 401k

Your old 401k can be combined with your new one. I've done this in the past and DH is currently doing it. Some companies will not require you to rollover the 401k if you leave. DH's has been at his old job for 2 years. He's in the process of rolling it over.

Best thing to do is call your current 401k company and let them know you want to roll it into a new 401k. They'll send you the necessary paperwork. Make sure the check is not made out to you or there will be tax consequences. I'm sure the new job's HR dept can also answer any questions you may have.

Posted 1/25/06 8:49 AM
 

Sassyz75
Turning a new page

Member since 5/05

9731 total posts

Name:
Dina

Re: Advice on rolling over a 401k

when i left my job I rolled it over into an IRA @ Chase (along with a Dreyfus IRA that was terrible).

It's pretty easy- they will help you with the paper work.

Posted 1/25/06 8:58 AM
 

CookiePuss
Cake from Outer Space!

Member since 5/05

14021 total posts

Name:

Re: Advice on rolling over a 401k

Posted by mommy2Alex

Posted by Laura1976

You have to "roll over" a 401K to an IRA once you leave a job. .



I don't believe this is true. I left my old job over 2 years ago and I never rolled it over. I just don't contribute to it anymore.

ETA - I can still rebalance and switch monies within the plan.



You are no longer prohibited from rolling over an employer sponsed plan to a Traditional IRA. You can now commingle the two. However, if you plan on rolling your 401k to an IRA and then rolling it over to a new employer sponsed plan, you don't want to commingle the monies.

ETA: As posted above, it's very important to do a DIRECT ROLLOVER. This is when you will designate a new custodian for the money. It may be sent to but made out as "ABC Trust Company for the benefit of ....."

If you don't do a direct rollover, they will withhold 20% as a prepayment of taxes. You will have to make up this 20% when you deposit the check in a new qualified/tax sheltered plan and then take the 20% as a tax credit.

Message edited 1/25/2006 10:11:14 AM.

Posted 1/25/06 10:08 AM
 
 

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