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Transferring balance of 401k to a Vanguard account

By Terry Savage on August 06, 2020 | Investments

How do I go about opening a Vanguard account? Is this advisable to move the money until needed? I can also leave it in the account if desired. I’m Over 72 years old. The amt is approx $50k Thank you!

Terry Says

OK, I’m assuming that you are retired and hoping to find some “safer” alternative investments inside a choice of Vanguard mutual funds, compared to those offered in typical company 40l(k) plans where the objective is long-term growth.
Just call Vanguard and give them the information about your current plan (can’t roll it until you have left the company) and they will handle the transfer to an IRA ROLLOVER ACCOUNT. There will be no taxes due at this time. But next year you will have to start regular required minimum withdrawals. they’ll tell you how much. And they will advise you on creating a low-cost, conservative group of mutual funds — including some in a money market fund — for your retirement years.



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