where is the best place to transfer your money to your 401k plan if you quit a job.?
- rcdruryLv 71 decade agoFavorite Answer
In order to maintain the tax-deferred status and creditor protections, it must be rolled into an IRA or another employer-sponsored retirement plan. There really is no good reason to roll it over to a new employer; it only helps them, not you.
An IRA can be funded with just about anything from straight securities and mutual funds to CD or money market accounts. It is best to consult with a qualified financial planner or advisor who can advise you on your best options and do all of the legwork for you. Most will do so at no cost.
ADDED: Another poster suggested leaving it with your current employer. This is probably an option, but there is no advantage to participating in an employer-sponsored plan to which you are not contributing. This only limits your investment options and control; and if your previous employer goes out of business, retrieving your account could be a nightmare. I've dealt in the past with a client to whom this happened. It took her well over a year to gain access.Source(s): Executive Director, Association of Christian Financial Advisors
- Anonymous4 years ago
between the main straightforward retirement plans is the 401 ok. In a 401 ok, some quantity is deducted month-to-month out of your pay verify. the money is tax deferred and so which you do not pay taxes on the quantity invested. many times there are countless investment selections like mutual money, shares, bonds and so on. at times, the corporation will adventure the worker’s contribution to the account, inspite of the undeniable fact that those situations are reducing.
- RichardLLv 41 decade ago
There are many firms out there that will accept 401Ks as roll overs. Fidelity, for example, is one of many.
- wg0zLv 71 decade ago
Leaving it right where it is might be OK.
Who's the current trustee?