Ufinance.net

There are a few options of what to do with your 401k when leaving a job.

1. Roll-over your 401k into an IRA

• If you want to consolidate accounts and possibly save money on fees

• It must be rolled over into an IRA (not Roth–but later can be converted to Roth is your adjusted gross income is less than $100,000)

2. Remain with the 401k at your work

• If your old employer has a good 401k plan with good, low-cost investment choices
• If your new employer does not have a 401k plan or has a worse plan than the job you are leaving
• Confirm that you still have the same 401k previledges as when you were employed with your old employer

• If the value of your 401k is under $5,000 you can be taken out of the 401k–if so then follow option 1 or 3

3. Roll-over to my new employer’s 401k

• If your new employer has a great 401k plan with good services

• You will probably pay less in fees with this 401k than rolling it an IRA

This entry was posted on Thursday, May 4th, 2006 at 6:49 pm and is filed under How To, Retirement, Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.