Results 1 to 11 of 11

Thread: 401K Plan Question

  1. #1
    Curious Guest
    Joined
    Mar 2011
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Arrow 401K Plan Question

    I still have a 401K account open from my old office job. I got laid off 2 years ago from there. Since getting laid off, that's when I started dancing. I still receive my 401k statements with my old job's company name and manager's name on it.

    She wants to talk to me now, the former company manager(she's the one who handle's the employees retirement funds/taxes). I don't know exactly for what?

    She is probably wondering why I haven't transferred it to my "new job".

    I don't know what to tell her? She is kind of nosey. I don't want to talk to her.

    What do I tell her? It's kind of hard for me to come up with excuses/lies about where i'm working now, because I have no idea what to say.

    Help please.. I don't know much about this kind of stuff.

    Thanks!

  2. #2
    God/dess
    Joined
    Sep 2006
    Posts
    7,964
    Thanks
    6,155
    Thanked 10,183 Times in 4,602 Posts

    Default Re: 401K Plan Question

    You don't have to tell her what kind of work you're doing. You can transfer your 401k into any retirement fund. You don't have to transfer it to your new job. You can transfer it to Fidelity, Vanguard, T Rowe Price, or any other investment firm with retirement funds.

  3. #3
    Member
    Joined
    Dec 2010
    Posts
    30
    Thanks
    4
    Thanked 9 Times in 8 Posts

    Default Re: 401K Plan Question

    Quote Originally Posted by eagle2 View Post
    You don't have to tell her what kind of work you're doing. You can transfer your 401k into any retirement fund. You don't have to transfer it to your new job. You can transfer it to Fidelity, Vanguard, T Rowe Price, or any other investment firm with retirement funds.
    Eagle is exactly correct. The three companies Eagle mention are good mutual fund companies which can help you through the process should you chose to do so. I just helped a friend do this.

  4. #4
    Member
    Joined
    Dec 2010
    Posts
    30
    Thanks
    4
    Thanked 9 Times in 8 Posts

    Default Re: 401K Plan Question

    Also, if she asked what you are doing now, you could say you done some odd jobs but still looking for full time employment.

  5. #5
    Veteran Member
    Joined
    Mar 2008
    Location
    Michigan
    Posts
    464
    Thanks
    229
    Thanked 285 Times in 159 Posts
    My Mood
    Amused

    Default Re: 401K Plan Question

    If you made contributions AFTER TAX, you can just get the money. If you made the contributions BEFORE TAX...any payout would have to be made directly to new investment company. NOT TO YOU. If check is made out to you and even if you turn that check immediately over to a new investment....you will pay taxes and also a penalty for early distribution. They can make the check out to new investment company for deposit in your name. Under no circumstances accept a check made out to you if it went in before tax unless you are willing to pay taxes and the ten percent penalty. I would transfer and cut all ties with former employer.

  6. #6
    God/dess rickdugan's Avatar
    Joined
    Apr 2010
    Location
    NYC
    Posts
    4,570
    Thanks
    4,406
    Thanked 7,481 Times in 2,715 Posts
    My Mood
    Amused

    Default Re: 401K Plan Question

    Chakon, you need to transfer your 401k investments directly into an Individual Retirement Account (IRA). This is called "rolling over" your 401k investments into an IRA.

    Vanguard, Fidelity and others mentioned above are mutual fund companies. You can open an individual IRA account through either of them. They also have advisors that can help you in understanding how to fill out the rollover IRA application and with selecting funds similar to what you are holding now.

    Before you do this though, you need to talk to your former company manager to find out whether the plan or funds that you are using now charge penalties for moving out of their funds. If so, you might want to see if you could rollover your 401k into an IRA with the fund company that is already holding your 401k investments.

  7. #7
    Curious Guest
    Joined
    Mar 2011
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: 401K Plan Question

    I have not made any contributions to Oppenheimer's since i've gotten laid off with that company.

    Darn, so I really should talk to her then. ugh.

    Thanks for the help guys!

  8. #8
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: 401K Plan Question

    another consideration is the fact that the limited investment options that are probably available in your 'dormant' 401k account aren't producing as much income as they could be compared to the diverse investment options available with a Vanguard / Fidelity / TD Ameritrade IRA. This will especially be the case if the US economy decides to take a double dip ... since most employer 401k options don't allow any 'contrary' types of investments ( i.e. precious metals, foreign investments, inverse index ETF's etc. ) which are able to gain value in a declining market.

  9. #9
    Curious Guest
    Joined
    Mar 2011
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: 401K Plan Question

    I already spoke with Oppenheimer and getting documents to do the rollover with their IRA. I was told that I don't have to call my old job.

    Melonie, now you have me thinking I should've gone with one of the other companies instead? Although, I don't have precious metals or foreign funds. Hmmm.. I may look into that later.

  10. #10
    God/dess
    Joined
    Sep 2006
    Posts
    7,964
    Thanks
    6,155
    Thanked 10,183 Times in 4,602 Posts

    Default Re: 401K Plan Question

    Make sure you look at the fees for the funds where you move your money. I suggest you move your account to a fund that has low fees.

  11. #11
    God/dess rickdugan's Avatar
    Joined
    Apr 2010
    Location
    NYC
    Posts
    4,570
    Thanks
    4,406
    Thanked 7,481 Times in 2,715 Posts
    My Mood
    Amused

    Default Re: 401K Plan Question

    Chakon, if you don't know what you are doing then IMHO you should just keep it simple and roll it over with your existing fund company. Oppenheimer would not have been my first choice, but they have a wide enough selection of funds to allow you to diversify among asset classes, capitalizations and countries.

    Once you have completed your rollover, you can start exploring different options. In doing so, however, you need to know how much it will cost you to leave the funds you are invested in and move the proceeds to another company. Some funds have what are called deferred sales charges, which means that they may charge anywhere from 1%-3%+ when you redeem (the word that fund companies use for taking your money out). Until you know what it willl cost you to move, your best bet is to just get your investments out of the 401k plan and into your own IRA, which you will then be able to control directly.

    Good luck!

Similar Threads

  1. Replies: 0
    Last Post: 02-02-2010, 10:54 AM
  2. Question about Plan B
    By NikkaR in forum Body Business
    Replies: 4
    Last Post: 10-07-2008, 12:43 AM
  3. Replies: 0
    Last Post: 06-07-2008, 04:06 AM
  4. question about 401k
    By made_of_sequins in forum Dollar Den
    Replies: 1
    Last Post: 04-24-2008, 12:54 PM
  5. Noob... 401k Questions...
    By Bella21 in forum Dollar Den
    Replies: 6
    Last Post: 04-15-2007, 10:36 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •