Rolling Over 401(k)s

We’re doing alright preparing for this move. I’m dead tired, but once this is done, I’ll be able to rest easy. Something that I’m keeping in the back of mind for now is the plan for our retirement funds.

We both have 401(k)s with our employers. My 401(k) is considerably less than my husband; one reason being I just got qualified this year.

What to Do with Your 401(k) When You Switch Jobs

There are basically three options for us (and everyone else in this situation).

• Roll it over to your new job’s 401(k) or to your IRA. This isn’t a hard process, but it takes some time to fill out the paperwork. Since I already have an IRA it’ll be less paperwork than my husband if he decides to go this route.
• Keep it at its current spot. I can’t do this as I don’t have enough vested to have my employer keep it in there. My husband has to decide if he wants to do this option. If he’s happy with the service and selection that he has, this is fine.
• Spend it. (DO NOT DO THIS!!!!!) You’ll be taxed for early withdrawal and you’re undo the work you’ve put towards retirement. If you spend your retirement money, it will also effect your income when you d your taxes.

We haven’t made a decision on either the first or the second option. We haven’t even discussed it since we’re more concerned with more immediate needs like making arrangements for the moving truck and turning on utilities.

Hopefully, I’ll be able to relax on Monday.

Photo Credit: Zzzack

• What Everybody Ought to Know About Handling Finances in Today's Economy It's not impossible to handle your finances in this economy; it just takes some time. Getting your finances under control is completely doable if you take it step by step. Know exactly where you stand in your finances. You have to be able to answer these questions with specific......
• How My Retirement is Currently Doing? (June 09 Update) My Retirement Account Update  It's been a while since I shared how my Roth IRA was doing. I checked my retirement account in October 2008 and shared how it went down over 20%. That certainly stung, but I didn't withdraw money in reaction to the market.  Since I'm investing for the......

• will the government raid Roth IRAs? Why does everyone love Roth IRAs so much? Is it the romantic ideal of a tax-free withdrawal in your old age?  Is it a vision of tax-free growth stretching off into the future? photo credit: The G-tastic 7 Let me paint a darker picture. Social Security has always been a......
• Roth 401K, Roth IRA, 401K Retirement Plans: Which is Best? The Roth 401 (k) plan is a new form of retirement account combining the Roth IRA (k) plan and the regular 401 (k) plan. It has bits of both plans which allows the employee to have more flexibility when planning out his retirement as long as his employer agrees......