My blog has moved! Redirecting…

You should be automatically redirected. If not, visit http://finance.webaplex.com/ and update your bookmarks.

Finance For Dummies

Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.

Thursday, May 04, 2006

401k Tips When Switching Jobs

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

1 Comments:

  • At 6/13/2006 4:29 AM, Anonymous Rick J said…

    I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
    the indexes easily.

    Take a look at Wallstreetwinnersonline.com

    RickJ

     

Post a Comment

<< Home