bleg
[misc]
posted by catherine / August 09, 2005 / 
i am completely idiotic in the ways of finances, etc, so: can somebody let me know what the hell you do when you leave a job and need to, um, roll over? your 401k? what are the best options? maybe even asking this question is stupid, but i NEED TO KNOW!
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i could be a complete jackass here, but i believe they'll keep it for you as long as you want them to...unless you have a new company you want to roll it into, you might as well leave it. they're not going to spend it on pizza or anything. otherwise, you can roll it into an IRA at most banks i'm pretty sure.
but don't quote me...its amazing how fast your undergrad knowledge gets flushed out of your brain by malted hops.
they will! I just did this! If you are financially as stupid as I am, and the thought of dealing with money/retirement/benefits ANYTHING makes you cry, then you can just leave it. They should keep it for you forever, and send you statements likeusual. The amount just won't change, and yr company won't contribute any more.
you do have several options.
1. like your other commenters have said, you can leave it in the plan. it will just continue to collect interest/dividends/whathaveyou, but there will obviously be no more contributions.
2. you can roll it over into another employer plan (which you won't have) or an IRA.
3. you can withdraw the funds. the good news: since you're going to school, you won't be hit with the 10% penalty. they'd likely withhold 20% for income taxes, although when you file, you might get some of that back (depending on your income otherwise).
wow, i love the internet! thanks guys! i think i'll most likely leave it with my company for now. when (if) i get a new job, will it be easy to roll it over then? cause i like making direct deposit contributions to it from my salary.
You might want to check with them on the leaving it there issue. Some companies reserve the right to pay out accounts under a given $$ amount at their own discretion, if they get tired of holding on to your funds for you.
oh! okay, i definitely will, thanks for the tip. man, you guys know everything.
Cash it and buy boots.
dont you dare buy boots. Roll it over. It can get confusing having 401k's all over the place. They also can charge you a fee to manage it for you since you are no longer underemployment. My last job charged 100 dollars a year. If your new job is compatable its a very smooth rollover. If you dont roll over to the new companies 401k roll it into your own ira.
Roll it over into an IRA. That's what i did at my last job. This way you might be able to make more money as opposed to just having it sit there. My dad does stuff like this for a living and I can get some info for you if you want.
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