401k — must move out of my old employer plan
Hi Terry, I retired two years ago I have a little under 40,000 in my work 401k I have lost 2,000.00 in the last 2 weeks. I was told I have to do something with it before I turn 72 in March. My question is should I wait a few months to put in a Roth IRA or should I do it now so I don’t loose any more money.
Terry Says
So this money is still in your former company 40l(k)? You should contact 1-800-FIDEITY or 1-800-VANGUARD and tell them you want to do a direct IRA ROLLOVER from your company plan into an IRA Rollover account. NOTE: This will NOT be a ROTH IRA — but instead a “traditional” IRA rollover account.
Your old company plan will be turned into cash — and cash will be transferred to the new IRA. You NEVER TOUCH the money — do not take a check. Instead it will be transferred directly into your new account.
Then your new custodian — Fidelity or Vanguard — will ask you how you want the cash invested inside your new IRA. Just tell them to put it in their money market mutual fund for the time being. You won’t lose another penny there, though the interest rate is low.
Do it NOW — because next year you will be required to take an RMD — required minimum withdrawal — and it will be much easier to do it from your new Rollover IRA. They will calculate the amount for you.
