401K
Hi Terry, I just got cancer and am on social security, I have a 401K with my work and am wondering what the best solution to do with it? Is there anywhere I can put it and it will grow interest? Please let me know because I don’t want to spend it and want it somewhere safe,
Terry Says
First, I’m sorry about your health challenges. Do you have someone you trust to help you through this? Have you created a healthcare power of attorney and living will? I suggest you get those things in order so you won’t have to worry about them while you are undergoing treatment.
I also suggest that you call 1-800-FIDELITY and ask them to help you do a DIRECT ROLLOVER of your 40l(k) into an IRA rollover account. They make it very easy if you give them your 40l(k) information — and you never touch the money. That way no taxes are due at this time.
They will ask you “how you want to invest” the money once it gets into the IRA. Just tell them you only want it put into the “government securities MONEY MARKET fund.” It will be safe there. And when you want to take money out, you can have it wired directly to your bank account.
And when you reach age 72, they will help you calculate your required minimum distribution and send it to your bank account.
