Ask Terry Questions Move 401 — lost job

Move 401 — lost job

By Terry Savage on July 10, 2018 | Investments

Just lost my job what to do with my 401K

Terry Says

Your choices are either to leave it with your current company, roll it into your next company’s plan — or do a rollover to an IRA. I would prefer the latter. Contact Fidelity or Vanguard (just call 1-800 FIDELITY or 1-800 VANGUARD) and they will help you with the process. DO NOT take the money out in the form of a check payable to yourself!! You will owe taxes and a huge penalty if you are under age 59-1/2. And you’ll lose out on all that future tax-deferred growth.
And once that is done, focus on the next job. Unemployment is at record lows. I’m betting you will actually improve your circumstances if you move quickly. And when you get that next job, be sure to join that company’s retirement plan.

I know this is a shocking time, but it couldn’t happen (if it had to) at a better time! Get going!



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