What do I do with my 401K funds from my past employer?
Answer:
Well since the employer does NOT have a 401k there are few things to consider.
1. Chances are you can just use the existing 401k service, but you might have to pay extra fee's you didn't before.
2. You can roll it over into a Roth IRA -- There are a lot of places that will do this. If you are a savvy investor try:
http://www.scottrade.com
Otherwise you really need to talk to a finacial investor.. Beware of how they make money. A lot of times the recommend mutual funds they make commision off of. And these mutual funds are usually ones that the company they work for own.
3. There are tax implications with rolling it over. Never just ask for the money in a cash out. You will pay taxes and take a 10% hit + pay federal tax.. Make sure you are initiating a transfer of the assets to a new account.
4. You need to consider your age you can actually draw on your 401k at age 55 if you left the company. Either way it may make sense to just keep it were it is at to avoid paying the federal tax until you draw on it for retirement. Even if you have to pay fees in the mean time.
I know this doesn't answer your question. But it at least gives you somethings to consider. Worst case scenario call up you 401k and just start asking questions. If you have a lot of money they will be more than willing to help. If you have very little and are young, then I would take the opportunity to start a Roth IRA. That's what I do with my first 401k. Check out http://www.sharebuilder.com
Transfer them to your present employer's 401K plan.
Rollover to a new plan
transfer them to your new job
Your bank can also assist you with the process of rolling over 401k funds to an IRA account. They can also help you evaluate the benefits of different types of IRA accounts. You don't want to wait too long on this as you only have a limited time period to roll over funds. Depending on your current balance and plan restrictions, it is also true that you may be able to continue to particpate in the previous employer's 401k plan, minus things like matching funds.
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