gaewsky1 Posted November 29, 2011 Report Share Posted November 29, 2011 Does anyone know if their is a specific amount of time to rollover a 401k to a IRA? I got laid off about 1 1/2 yrs ago and just left the money in the 401k plan. I now want to roll it over to an IRA. I didn't know if I would get taxed with me taking so long to change my mind. I have found I have 60 days to transfer the money. Is that 60 days from the lay off or 60 from when I approved the transfer? Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted November 29, 2011 Report Share Posted November 29, 2011 Generally speaking, you can rollover a 401(k) to an IRA anytime (unless the plan is under $5k or you're 62+ yrs old). The 60-days comes into effect if you take any sort of distribution from a qualified (tax-deferred) retirement plan; those funds become taxable once withdrawn, unless you put them back into another 401(k) or IRA within 60 days. Are you planning on going back to work at some point? You can also transfer funds from your old 401(k) into a new 401(k), provided the new employer's plan allows it. However, I strongly recommend you rollover the 401(k) to an IRA account, which allows you to control the investments you make in it. Check out Vanguard or Fidelity for account options. If you served in the military (or had parents/immediate family that did) check out USAA.com for IRA options as well. 1 Quote Link to comment Share on other sites More sharing options...
gaewsky1 Posted November 29, 2011 Author Report Share Posted November 29, 2011 Exactly what I was looking for. Thank you. I have been working but I am now a self employed ind. contractor for a company. No 401k so the IRA is what I would do. Generally speaking, you can rollover a 401(k) to an IRA anytime (unless the plan is under $5k or you're 62+ yrs old). The 60-days comes into effect if you take any sort of distribution from a qualified (tax-deferred) retirement plan; those funds become taxable once withdrawn, unless you put them back into another 401(k) or IRA within 60 days. Are you planning on going back to work at some point? You can also transfer funds from your old 401(k) into a new 401(k), provided the new employer's plan allows it. However, I strongly recommend you rollover the 401(k) to an IRA account, which allows you to control the investments you make in it. Check out Vanguard or Fidelity for account options. If you served in the military (or had parents/immediate family that did) check out USAA.com for IRA options as well. Quote Link to comment Share on other sites More sharing options...
Mojoe Posted November 29, 2011 Report Share Posted November 29, 2011 If you served in the military (or had parents/immediate family that did) check out USAA.com for IRA options as well. I'm with USAA. Talked with a Rep a while back and they said they no longer require a military acquaintance to bank with them. I have been with them a few years now and they have been awesome in every aspect. Quote Link to comment Share on other sites More sharing options...
mmrmnhrm Posted November 29, 2011 Report Share Posted November 29, 2011 Did a 401k > Roth direct rollover/conversion last year, and the process was relatively painless. If possible, make it a direct rollover (even if you don't do the conversion) so that you don't have to worry about the whole 60-day BS. This is usually easy to do (one phone call, maybe one form) if it's within the same investment house (eg. employer 401k was with Vanguard, and you're staying with Vanguard), if you're changing houses you'll have to see how the new house wants the money (typically a check from the old house with something like "payable fbo cementhead"). Finally, if you do convert from 401k to Roth, be sure to have fed taxes taken out, otherwise you'll have a potentially HUGE bill to pay come tax season. Hell, you'll still have a huge state (but not local, usually) bill to pay, but at least you can take care of the fed as part of the transfer process. Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted November 29, 2011 Report Share Posted November 29, 2011 I'm with USAA. Talked with a Rep a while back and they said they no longer require a military acquaintance to bank with them. I have been with them a few years now and they have been awesome in every aspect. Only certain things are available to you, not everything.... https://www.usaa.com/inet/pages/why_choose_usaa_eligibility_main Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.