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| rlnlandal |
 Posted: Thu Feb 10, 2005 3:17 pm Post subject: Leaving a job... |
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Investing Associate
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| When you leave a job and have a 401K is it best to leave it where it is, or roll it over into a new plan? And if you leave it there can you continue to add money? |
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| Aladdin |
| Posted: Thu Feb 10, 2005 3:23 pm Post subject: |
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Investing Associate
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| Most companies require you to move the money, whether to your new company (although the new comapny may require you to work there for a certain amount of time before you can do that) or into an IRA. I would think that you would want to move it out of the old company so that you can have more control and easier access if you want to do something with it. |
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| rlnlandal |
| Posted: Thu Feb 10, 2005 3:46 pm Post subject: |
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Investing Associate
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| I was told that he could leave the money there since it isn't truly through his company, they just contribute to it, but I just don't know if it is wiser in the long run to move it soyou earn more $$. |
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| Aladdin |
| Posted: Thu Feb 10, 2005 3:51 pm Post subject: |
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Investing Associate
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| He might have to pay fees if he isn't with the company any longer. He should check on that. |
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| TheDisneyBunch |
| Posted: Fri Feb 11, 2005 7:45 am Post subject: |
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Investing Associate
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| If you have over $5000, you are not required to take your money with you when you go. Under $5000, the employer can force the payout. It is better however to move it into an IRA where you have controil over it. |
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| Aladdin |
| Posted: Fri Feb 11, 2005 1:03 pm Post subject: |
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Investing Associate
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| TheDisneyBunch wrote: | | If you have over $5000, you are not required to take your money with you when you go. Under $5000, the employer can force the payout. It is better however to move it into an IRA where you have controil over it. |
I was just coming to post that as my husband told me about that. He had that choice with one of his jobs, and moved it into an IRA. |
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| trixiezzz |
| Posted: Sat Feb 12, 2005 6:21 am Post subject: |
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Investing Manager
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| I am in this situation too. I've chosen to leave mine, because it has really been performing better than any others I have. Also I may return to this company some day. Is there any risk leaving it? |
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| noksagt |
| Posted: Fri Mar 11, 2005 10:47 am Post subject: |
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Member of the Month! March
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| trixiezzz wrote: | | Is there any risk leaving it? | Some companies create fee structures or have a limited selection such that it wouldn't make sense to leave it. If your company has good and/or good fees, then go ahead and leave it. If they don't, there's little downside of rolling it over to your new employer or to an IRA.
Last edited by noksagt on Sun Mar 13, 2005 12:51 pm; edited 1 time in total |
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| tylr |
| Posted: Sat Mar 12, 2005 1:19 pm Post subject: Re: Leaving a job... |
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Investing Associate
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| rlnlandal wrote: | | When you leave a job and have a 401K is it best to leave it where it is, or roll it over into a new plan? And if you leave it there can you continue to add money? |
It depends on your investment goals and the 401K selections available; however, for most plans, you may not have a choice if your fund is under 5K. Assuming that this does not apply, it's worthy to note that some 401K plans have institutional classes of good funds at at an extremely low expense ratio that an individual investor will not have access to outside of the plan unless at a very high initial minimum investment (ie. 250K to 1M+). Some 401k also have stable value funds at 5%+ yield and is a much better place to park fixed income than bonds right now.
If you leave the fund there, you cannot contribute new money. |
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