Comments on: How to Roll Over Your 401(k) When You Leave or Lose Your Job – The 401k Rollover http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/ Helping a unique generation achieve financial independence. Sat, 21 Nov 2009 07:34:38 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Keith http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-123053 Keith Wed, 18 Nov 2009 15:28:06 +0000 http://genxfinance.com/?p=1039#comment-123053 I left a former employer 3 years ago. I rolled over my 401k at that time. Recently I received an additional distribution of a small amount that was apparently left in my account. Currently I contribute to a 403B. Can I consider a portion of my monthly contributions now as if it replaces the rollover of this latest distribution? I left a former employer 3 years ago. I rolled over my 401k at that time. Recently I received an additional distribution of a small amount that was apparently left in my account. Currently I contribute to a 403B. Can I consider a portion of my monthly contributions now as if it replaces the rollover of this latest distribution?

]]> By: Tom http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122749 Tom Fri, 30 Oct 2009 16:37:09 +0000 http://genxfinance.com/?p=1039#comment-122749 This is a great resource of information, I really appreciate all the comments that have been added here. I do have a problem that has not been addressed yet. I am in my mid forties & have been on permanent disability leave with montly payments only from my long term disability insurance carrier that are enough to live off of so far. (Thank God that I had paid into the plan for 20 years). I have only $ 120,000 in my 401K due to late starting & high risk taking. As I said, so far I can survive financially on my payments & wife's income as well, barely. Ongoing medical costs might change this position in the semi-near future. I converted both of my 401K & my deferred compensation 401K plan to the lowest risk mutual fund type that the plan offered in order to preserve what was left in July of 2008. My question is what to do with those funds now. I am not sure if leaving them in the plan (Fidelity) is flexible enough to take some out if needed in the future, or if rolling it into a Roth IRA is better for my situation. Also, obviously I missed the recent gains in the market.... I know...Big Mistake...., is it worth considering putting into higher risk/high gains distribution for a little while, or should it be left alone?? I know no one has a crystal ball, but there must be some conventional wisdom in this growing popular situation. Thank you for any & all input, Tom This is a great resource of information, I really appreciate all the comments that have been added here. I do have a problem that has not been addressed yet. I am in my mid forties & have been on permanent disability leave with montly payments only from my long term disability insurance carrier that are enough to live off of so far. (Thank God that I had paid into the plan for 20 years).

I have only $ 120,000 in my 401K due to late starting & high risk taking. As I said, so far I can survive financially on my payments & wife’s income as well, barely. Ongoing medical costs might change this position in the semi-near future. I converted both of my 401K & my deferred compensation 401K plan to the lowest risk mutual fund type that the plan offered in order to preserve what was left in July of 2008.
My question is what to do with those funds now. I am not sure if leaving them in the plan (Fidelity) is flexible enough to take some out if needed in the future, or if rolling it into a Roth IRA is better for my situation. Also, obviously I missed the recent gains in the market…. I know…Big Mistake…., is it worth considering putting into higher risk/high gains distribution for a little while, or should it be left alone?? I know no one has a crystal ball, but there must be some conventional wisdom in this growing popular situation.

Thank you for any & all input,
Tom

]]> By: Faisal http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122732 Faisal Fri, 30 Oct 2009 05:17:42 +0000 http://genxfinance.com/?p=1039#comment-122732 Many people are not aware and are not told about the options that they may have with a 401k rollover. You see Bank of America, Charles Schwab and several other large investment firms starting to really advertise for clients to utilize 401k rollovers, with one catch they are not truly self-directed because they limit what you can roll your money into. One of the main investments that is usually not spoken about is real estate. There is the constant argument of which investment is better for your 401k rollover, land or stocks? While stocks are easy to buy and sell, easy to track, and companies are required to release information, real estate has many other advantages. The most important being that they cant make more land, Dubai excluded. The general public as a whole are more comfortable with stocks because that is what they are told to do. Stocks however can become worthless and essentially lose all of it's value, think Bear Stearns, Lehman Brothers, or all the dot-com companies. Many people are not aware and are not told about the options that they may have with a 401k rollover. You see Bank of America, Charles Schwab and several other large investment firms starting to really advertise for clients to utilize 401k rollovers, with one catch they are not truly self-directed because they limit what you can roll your money into. One of the main investments that is usually not spoken about is real estate.

There is the constant argument of which investment is better for your 401k rollover, land or stocks? While stocks are easy to buy and sell, easy to track, and companies are required to release information, real estate has many other advantages. The most important being that they cant make more land, Dubai excluded. The general public as a whole are more comfortable with stocks because that is what they are told to do. Stocks however can become worthless and essentially lose all of it’s value, think Bear Stearns, Lehman Brothers, or all the dot-com companies.

]]> By: RolloverCenter.com http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122639 RolloverCenter.com Sat, 24 Oct 2009 13:31:33 +0000 http://genxfinance.com/?p=1039#comment-122639 Steve, The "blackout" period that Jeremy is talking about is complicated in the case of bankruptcy. Normal "notice periods", usually 30 days, as outlined in Sarbanes-Oxley, do not apply in bankruptcies. Dept of Labor guidelines are not enforceable if a company is under bankruptcy protection. Thus, a blackout could start at anytime without warning. During a blackout you will be unable to direct your investments,take a distribution, or initiate a transfer or rollover. In a nutshell, you can't do anything. Blackouts usually last 3-9 months. Jeremy is correct in saying your money will still be there, but, rolling it into an IRA might help you avoid a lot of headaches. Steve,
The “blackout” period that Jeremy is talking about is complicated in the case of bankruptcy. Normal “notice periods”, usually 30 days, as outlined in Sarbanes-Oxley, do not apply in bankruptcies. Dept of Labor guidelines are not enforceable if a company is under bankruptcy protection. Thus, a blackout could start at anytime without warning. During a blackout you will be unable to direct your investments,take a distribution, or initiate a transfer or rollover. In a nutshell, you can’t do anything. Blackouts usually last 3-9 months. Jeremy is correct in saying your money will still be there, but, rolling it into an IRA might help you avoid a lot of headaches.

]]> By: Jeremy http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122600 Jeremy Thu, 22 Oct 2009 15:04:02 +0000 http://genxfinance.com/?p=1039#comment-122600 Steve, if your old employer goes bankrupt your funds are still safe. Those assets are protected and can't be seized even in the event of a bankruptcy. So in terms of losing your money because the company goes under, that isn't a concern. But depending on how and who manages the plan you could find it more difficult to access the funds if the company were to shut down. But even then, the assets are held with another company and ultimately you'd still be able to get to those assets just fine. Steve, if your old employer goes bankrupt your funds are still safe. Those assets are protected and can’t be seized even in the event of a bankruptcy. So in terms of losing your money because the company goes under, that isn’t a concern. But depending on how and who manages the plan you could find it more difficult to access the funds if the company were to shut down. But even then, the assets are held with another company and ultimately you’d still be able to get to those assets just fine.

]]> By: STEVE http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122599 STEVE Thu, 22 Oct 2009 14:44:10 +0000 http://genxfinance.com/?p=1039#comment-122599 i left my employer on sept. 1st. I planned on leaving my 401k ($97,000) alone, but I am concerned my employer may go out of business. how would this impact me? i left my employer on sept. 1st. I planned on leaving my 401k ($97,000) alone, but I am concerned my employer may go out of business. how would this impact me?

]]> By: Lori http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122553 Lori Mon, 19 Oct 2009 16:08:11 +0000 http://genxfinance.com/?p=1039#comment-122553 I was laid off Aug 1,2008. I requested a 401K direct rollover within a month. The investment account transfered the entire balance of my 401K into my IRA account. A year later my former employer contacted me stating that they overpaid my 401K because they did not caculated the vested amount of the company contribution. They are now requesting a refund of the amount that I was not vested. Since this was originally done as a direct rollover should the refund be handle the same way if at all? And are there any tax implications? I was laid off Aug 1,2008. I requested a 401K direct rollover within a month. The investment account transfered the entire balance of my 401K into my IRA account. A year later my former employer contacted me stating that they overpaid my 401K because they did not caculated the vested amount of the company contribution. They are now requesting a refund of the amount that I was not vested. Since this was originally done as a direct rollover should the refund be handle the same way if at all? And are there any tax implications?

]]> By: Tami Atkisson http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122520 Tami Atkisson Sat, 17 Oct 2009 05:38:48 +0000 http://genxfinance.com/?p=1039#comment-122520 I am 43 years old and just recently lost my job. I'm currently near completion of my Bachelor's degree. I've been told I could roll my 401k to an IRA and then use the funds for educational purposes. Is this true? My husband and I are leaning more in this direction. Your thoughts and/or comments would be most welcome. I am 43 years old and just recently lost my job. I’m currently near completion of my Bachelor’s degree. I’ve been told I could roll my 401k to an IRA and then use the funds for educational purposes. Is this true? My husband and I are leaning more in this direction. Your thoughts and/or comments would be most welcome.

]]> By: John Clark http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122429 John Clark Fri, 09 Oct 2009 13:52:46 +0000 http://genxfinance.com/?p=1039#comment-122429 I have a 401k with a previous employer where I stayed for only one year before being laid off. It's only about $11,000, but I would like to roll it over into another account. The plan administrator has informed me that because my employer does not pay matching until next year, I can't do anything with this money (withdrawal, rollover, etc.) until May or June of next year when they pay the employer match. Is this correct? I'm I bound by this because of the way my previous employer has structured their plan? I have a 401k with a previous employer where I stayed for only one year before being laid off. It’s only about $11,000, but I would like to roll it over into another account. The plan administrator has informed me that because my employer does not pay matching until next year, I can’t do anything with this money (withdrawal, rollover, etc.) until May or June of next year when they pay the employer match. Is this correct? I’m I bound by this because of the way my previous employer has structured their plan?

]]> By: Joe Rippel http://genxfinance.com/2009/01/15/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/#comment-122325 Joe Rippel Fri, 02 Oct 2009 22:31:59 +0000 http://genxfinance.com/?p=1039#comment-122325 What are the rules if your company is purchased by other company and your plan changes. Does that allow you to rollover your 401k to anyone? -Joe What are the rules if your company is purchased by other company and your plan changes. Does that allow you to rollover your 401k to anyone?

-Joe

]]>