The Nest - Buying a Home, Money Advice, Decorating Ideas, Easy Recipes

Message Boards | Recipes | Blogs
Photos | Tools | Q & A

< Previous topic | Next topic >

All Boards > Money Matters

Sort:
01-26-2009 at 7:07 PM
sw0494
Not Ranked
Joined on 01-12-2008
San Antonio,TX
7 Posts
177 Points
sw0494 is not online. Last active: 11-06-2009, 7:51 PMNewbie

401k

So here is what happened..I quit/got fired from my last job(its way too long of a story, promise), but I don't know what to do about my 401k. My new job doesn't have a 401k program(small company) and I want to find a way to move my money without getting penalized for it. Also where do I move it to? I am totally clueless about all of this, so any advice would be much appreciated.
Marrying the man of my dreams on October 17, 2009 
Report
Reply Quote
01-26-2009 at 7:08 PM
aml&jle
Not Ranked
Joined on 11-23-2006
Virginia
4,166 Posts
98,713 Points
aml&jle is not online. Last active: 07-27-2009, 5:41 PMSilver
You can roll it into an IRA
http://newtophilly.blogspot.com

 
Report
Reply Quote
01-26-2009 at 7:15 PM
KristiNJ1
Not Ranked
Joined on 09-28-2008
54 Posts
1,059 Points
KristiNJ1 is not online. Last active: 02-09-2009, 6:41 PMNewbie
Yep, do an IRA.  Any bank or financial institution can set one up for you.  Vanguard is a good choice for low fee mutual funds.
 
Report
Reply Quote
01-26-2009 at 9:35 PM
garfi60126
Not Ranked
Joined on 11-26-2007
Maryland
440 Posts
9,182 Points
garfi60126 is not online. Last active: 03-13-2010, 8:14 AMNewbie
Go to your bank.  They will be able to open an IRA account for you (or shop around at different banks).  Let them know you have money already sitting in a 401k from your old employer.  They will consider that money a "rollover" into your new IRA that you will open with them.  If you "roll" it over, it is 100% tax free.  Don't withdraw it in your own name, or you will get penalized.  You will need to contact your old employer's HR department most likely to get the forms to rollover you money.
Visit The Nest! 
Report
Reply Quote
01-26-2009 at 11:10 PM
JoannaNYLI...
Not Ranked
Joined on 01-27-2009
Nassau. Long Island
5 Posts
87 Points
JoannaNYLIFE is not online. Last active: 02-14-2009, 7:09 PMNewbie
Correct. rolling into an IRA is the way to go to avoid tax implications which will be the case if you leave your 401K with your previous company.  Then you can use your IRA to fund a Tax-deferred Annuity if you want to put some away for retirement and/or  allocate some to fund a whole life insurance policy that accumulates cash value.  The cash value can be used generally tax-free if you borrow against yourself.  Whole life cash value can also be used as collateral, as a supplemental retirement vehicle and even to supplement college expenses for your children.
 
Report
Reply Quote

search boards

choose another board

hot topics

"My MIL is jealous!
Posted by: BriLJL

"How to paint cabinets?"
Posted by: LilyB2521

"We're debt-free -- now what?"
Posted by: AGirlinWonderland