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401k rollover to IRA

By Terry Savage on October 16, 2020 | Financial Planning / Retirement

I will have to sell the funds in my 401k at my rmd date. That’s 2022. They don’t allow an in kind transfer until it’s sold and put in their mmda. Should I do it now while my funds are close to pre pandemic levels. Right now down about 5 to 7 k or wait and see what happens?

Terry Says

I would immediately do an IRA rollover of this 40l(k) money — to a place like Fidelity or Vanguard. They will help you do a DIRECT rollover — you don’t touch a check!
Then you can choose some conservative investments, including perhaps an equity-income fund, or a balanced fund. My usual advice is to leave about 25% in a money market deposit account — liquidity for RMDs, so you are never forced to sell at a bad time.
Do this– and don’t look back!!



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