What To Do With Old 401(k)

Added March 20, 2009 by Ilyce R. Glink

Print Articles

Summary: If you start a new job, you’re new employer may not accept a 401(k) rollover from your previous employer. One option is to roll your 401(k) into a self-directed IRA. If your 401(k) has done well, you may be able to leave it with your old employer.

Q: I just resigned from one employer and the new employer doesn't accept 401(k) rollovers. I am contributing to the new employer's 401(k) plan.

I'm not sure what to do with the old employers 401(k) funds. I know I have the option to convert to an IRA but in reality I probably wouldn't contribute additional funds to an IRA.

Should I just let my old 401(k) plan sit stagnant and just ebb and flow with the market?

A: It depends on how well you've done with your old employer's 401(k) plan. If the plan has produced good results, you could stick with it for awhile. I think the better option is to roll over the account into a self-directed IRA. Even if you never contribute another dime to the account, at least you can choose your own investment.

Choose a financial company with loads of options (mutual funds and index funds) and low fees for retiree accounts.

Good luck, and thanks for writing ThinkGlink.com.

See more articles on this topic by clicking on the "RELATED ARTICLES" above and to the right.

We have over 5000 articles on Real Estate Advice, Personal Finance Advice and Consumer Advice on our site. We encourage you to look at these articles. As always, if you have a comment on our articles, don't forget to post your comment below. We thank you for coming to ThinkGlink.com.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

Previous article Next article