Ask Terry Questions 401k rollovers

401k rollovers

By Terry Savage on March 09, 2020 | Financial Planning / Retirement

I am in the midst of 2 401k rollovers to a new IRA for my wife with the same place I have mine. A check is to arrive today and needs to be sent to them. Should I have my financial planner hold off investing it currently with the market declines and put on hold in a money market account until the market returns or what ?

Terry Says

Whoa! It is a big mistake to have a check sent directly to YOU — and your “financial planner” should have told you that. You MUST immediately reinvest it in an IRA rollover – and make sure that it goes INSIDE a rollover account. Otherwise you could be subject to takes. And remember you can only do this once a year!
I suggest just endorsing the check to the new IRA custodian, and NOT depositing it into your checking account.

Once you get it into a rollover account, I’d suggest just sticking it in a money market mutual fund until we see how this economic situation and volatile markets work out!

Recent Financial Planning / Retirement Questions



a personal
finance question