Ask Terry Questions What questions to ask when rolling over a 401k

What questions to ask when rolling over a 401k

By Terry Savage on April 24, 2014 | Financial Planning / Retirement

Hi Terry,
I would like to roll over an old 401k into an IRA and wanted to know what questions I should ask the financial firms I contact. I have 15 years until I plan on retiring so I won’t be using most of the money before then but I may need access to it from time to time. What firms do you recommend?
Thank you,

Terry Says:  First of all, don’t plan to use ANY of the money before you actually retire.  Not only will you pay a penalty (if withdrawals occur before age 59-1/2) and taxes, but you will lose all future tax-deferred growth of the money.  Second, you must rememer to do a DIRECT TRANSFER ROLLOVER — That is, don’t take a check, but have it transferred directly to your new custodian.  I would recommend one of the major mutual fund companies, such as T. Rowe Price, Fidelity or Vanguard.  They will handle the transaction.  AND, they will give you advice re the most appropriate investments for your money, based on your timing, goals, and other assets.



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