401K plan
My daughter lives with me and my 91 year old mother so with covid and her employer not being as careful as we would like, she took a leave of absence for a while from her part time job. Her employer said she would have to return or quit so she quit on good terms. She has a 401K through the x employer with PayChex Retirement. Paychex said she can stay with them or roll it over but that could cost $75.00 and she’s fine with keeping it there. It says the rate is 11.74. Is it wise to keep it there? She has about $7,500.00 in it and is 32 years old. Thank you!!
Terry Says
There is no “rate” on her 40l(k) plan. But that could be what it earned so far in 2020– since the stock market has rebounded. I haveno idea about the “costs” inside that 40l(k) plan. But I typically advise doing a rollover — direct –to a place like Vanguard or Fidelity. They will handle the transfer; she doesn’t touch the money. She will have to decide how to invest this Rollover IRA. I suggest an Equity-Income fund. Both companies have them. Tell her to just invest it there and forget it for another 30 years!
