|
|
401(k) Tip |
|
Remember, before you move your old 401(k) plan to a new plan, consider the following...
- Are the fees higher than your old plan?
- Are there enough investment options?
- Can you make the switch right away?
|
|
Putting all your retirement savings into one 401(k) plan has its advantages. For example, it will make it easier for you to track your assets’ performance.
But you should evaluate your new employer’s plan before deciding to roll your assets over. Make sure the new plan has plenty of investment choices and includes the investment options you prefer. Also check to make sure that accompanying fees aren’t too high. If you’re unhappy with the options provided by your new employer’s 401(k), you can always consider your other options, including a rollover into an IRA.
Remember, too, that even if your new employer accepts rollovers, you may have to wait until the next enrollment period, or sometimes until you’ve been on the job a full year, to move your assets.
Making Your Move
If you’ve decided to roll over your former employer’s 401(k) directly into your new employer’s plan, you’ll have to:
- Arrange the rollover with your new 401(k) plan administrator. You may have to select the investments you’d like to make before you complete the rollover. Otherwise, you can transfer the lump sum and allocate it gradually to investments of your choosing.
- Complete the forms required to move your money from your former employer’s plan.
- Ask your former administrator to send a check or electronically transmit your account value directly to the administrator of your new plan.
|
