401K rollover
Hello Terry, my question is about my 401. I was laid off on 11/08/2020 I still haven’t found a job and I received a letter asking me how or what to do with my savings account. They are suggesting to either stay in the plan, move to an IRA, or move to a new employer plan which I don’t have now. Do I need to decide right away? what do you suggest? Your assistance will be greatly appreciated.
Thank you
Terry Says
There is no requirement that you move your 40l(k) plan — but the company probably wants to simplify its recordkeeping. Ask how long you can leave it there, assuming you like the investment choices. You’ll probably never roll it into a new employer’s plan (and you WILL get a new job in the coming year!). But at some point, when things settle down, you might want to do a DIRECT ROLLOVER to Fidelity or Vanguard. You’d call either of these fund companies to start the process. The money will be sent to the new custodian in cash. Then you can choose new mutual funds for your investments.
