What Do I Do With the 401(k) From My Old Job?

You can go through a nightmare with this. ALWAYS take your money with you every time and do not wait. You can have an old 401K and they could move it to a new company. New company might say WHO ARE YOU? We don't know you. Can't get to a human. No way to gain access. They make you agree to paperless correspondence and then don't allow you to log in. You will be in limbo. Don't leave it one more day.

While your 401(k) account will likely continue to grow after you stop contributing to it, that growth will be limited by the market, your plan’s balance and other factors, so i can perceive the preference for IRA, I still want to know how best to compound at least $2m in retirement savings.

Why are IRA limits kept so LOW ($6K/$7K)? They should be made the same as 401k limits so that folks without a 401K can be on equal footing! At this point I'm focused on short term investment opportunities that could double $150k by Q1 of 2024.

Im having an issue, I have a TSP account which is Roth IRA and I think my new job I have out of the military won't accept Roth IRA rollovers to its 401k anyone know if this is true?

What can you do if you are leaving Walmart for a much better job BUT you have an outstanding loan balance on your 401K? I do want my first ROTH IRA and another brokerage account.

I’m 37 with $180k in my 401k I want to explore options, i don’t want to Rollover to my next company 401k I would like to purchase a property anything but to get the most out of my money legally.

how much does it cost to talk to pro about transfering your 401K to a Roth and signing all the correct forms?

The short answer is rollover to a Ira roth or traditional. Call fidelity they will walk you through it for free.

I have about 200k in my 401k from GM. When I quit I kept it in there because I like the investment options and I am able to take loans on it and pay myself back with interest. I would rather have that option than putting it into an IRA

I rolled over a previous 401k and cashed a stock-based pension fund to a IRA at Fidelity. Then put those funds into multiple index funds that average almost 10% growth in each year. Many companies are now offering Roth 401ks. If you have that option, I say take it. If you roll that over to a Roth IRA someday, it’s tax free. However, if you roll a traditional 401k or IRA into a Roth, you will have to pay taxes at that point before it goes into a Roth.

Great video! game changer, the 401k is good, because retirement choices determine a lot of things. My parents spent same number of years working desk job, but my mom was investing through a financial manager, and my dad through the 401k. My mom retired with over $4 million, whereas my dad retired with almost $2 million. It is your choice on what to pick. As for me I will always go with the financial manager.

I'm still at a crossroads deciding if to invest $400k on my stock portfolio. what’s the best way to take advantage of the market?

It depends on the company. I had a 401k through fidelity in my old job and the way they roll over is by sending you a check directly but paid to the new company where you are going to hold your new 401k or ira.

Instead of spending all that money I'm fees with smartvestor pro. Just use fidelity go. First 25k is fee free. Everything after that is at a low low fee of just .25 %

Advice was to hire a Ramsey employee 😜

Don't you always have to pay taxes on the amount you rollover from a 401k to a Roth IRA?

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Compounding is the process of earning interest on your initial investment, as well as on the interest that investment earns. This means that over time, your investment can grow exponentially. So the earlier you start investing, the more time your investment has to grow through compounding

85k after 30yrs? 🧐🧐🧐🧐

I figured this would turn into a sales pitch for financial advisors who have paid to be in the Ramsay club. And only 80k after 30 years?

Terrible explanation Dave lol

401K is a scam. The average balance on it at retirement is between $70K-$90K.

Hey I agree totally with him on this one! Happening to many I know right now.

GET TO THE POINT!!!

fidelity lost my retirement from the stock market... I had $30,000 in my retirement then when my job stitch to fidelity, fidelity placed my money into the stock market and over the pass 5 years I went from $30,000 to just $3,000..... what can I do😰

My wife got laid off due to COVID $7,000 in a 401k. Should she still roll over her 401k or just withdraw with this "crash" coming

Thanks!!

What if your job don't do rollovers ? WHAT OPTIONS DO U HAVE

OMG, can you BE more condescending?

Roll it over. Invest in diversified stock on your 401k. NOT RISKY HIGH YIELD.

Scolding. ?

I had a 401k from a previous employer and I did a rollover. I had the check sent to me. But I had 60 days to send it to my current employer retirement management company ( TRowePrice ). It was actually really terrifying. Because it was a check of over $215,000 and I was afraid of the IRS. So I overnighted express the check to TrowePrice.

There is one question that I have never been able to get the answer to regarding 401k to IRA roll overs. Are 401k roll overs to IRA “in-kind”? The funds in my 401k are not available on the open market….so if I do a roll over, this would mean I would lose my cost basis as I roll into a new fund. If I can’t roll the funds in-kind then it just doesn’t make a ton of sense.

This woman thought she would get unbiased advice. Instead, Dave wasted no time in doing a sales pitch to his "smartvestor pros". It's a simple question with a simple answer. All she needs to do is either keep the $ in the 401k or roll it over to a Trad. IRA with a low cost company like Vanguard.

I wish he would of discussed the rule of 55. As most people don’t realize they can access funds in a 401k if they quit or get fired WITHOUT a penalty. This woman was 58 and would have the ability to access funds prior to 59 1/2.

I think Dave might have missed something here. I left a company and the representative of the 401K mailed me a check, full amount, in my name. I went to the bank and opened an IRA and deposited the check. At tax time, my CPA filed a form showing the roll over so I wouldn't be taxed 20%. It worked.

How long is the process to roll over anyone know? I’m going to leave a job after 6 y and I am looking for a job rn to replace it but I also don’t know what to do with the 401k :(

It's a little upsetting Dave turned this woman directly to Mutual Funds and made no mention of these other low fee/low risk/reliable investments called Index Funds. Just straight to high risk/high cost/high reward investing? Most people (this woman included) aren't that good and managing their investments.

30 years and $85k? Wow...I've only invested for 10 years and have about $250k and fell I'm so far behind..

Why did I think she was going to have millions???

i always roll into my IRA, far better investment options. If i want to retire early on the rule of 55 my current employers 401k will suffice to buy me the 4.5 years until the IRA can be drawn on.

Can you get back to millionaire theme hours?

If she were British I’d say open a S.I.P.P. With vanguard 🇬🇧

A sweet lady

My company is canceling their 401k plan and my salary is higher then the IRA income limit. What do I do?

To only have 85k in her 401k after 30yrs is scary!

~Roll it to a Roth IRA~ Pay the taxes, you'll do great

She does not have to take the money out. If the old company has good funds with low fees, she should leave it. The next option is to open an IRA at a brokerage company like TD Ameritrade, Vanguard, etc. There are many good companies out there. Divide the money into 3-5 index funds like SPY, QQQ, etc. Do that and she will be fine.

Just put it into a personal IRA, rollover you just dont touch it or have them send you a check. Then open an IRA at Fidelity, Vanguard, ETrade or wherever.
You dont need an investment guru. Invest that money in a S%P 500 ETF a Mid or Small cap ETF and call it a day

If you like the funds and the fees are low keep it there.