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. 

How to

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

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