Finance and Economics > Investing and Saving

Switching jobs what to do with 401k?


My wife is about to change jobs. I am just starting to research this topic but I would like some input from this community in the meantime. The current value is around $25k. What have you guys done in this situation? If there is a relevant podcast covering this feel free to point me in that direction.

Thanks in advance.

David in MN:
Roll it over into a Roth IRA or trad IRA. We've done it a few times. Any online broker will owrk with you (E-Trade, TD Ameritrade, Schwab, etc.). It will take a little more work on your part as you will need to direct the funds rather than having "normal" 401 funds but it's not so bad once you get the swing of it and learn how to allocate your money. Companies like Vanguard and Fidelity make it easy to buy mutual funds and determine your risk level.

It's not as scary as it sounds.

What David said.  Any of those three companies he mentioned are good for the average investor.

Basically two steps:  open the IRA with an online broker (feel free to call them and they'll walk you through it if you have questions) and request a "direct rollover" distribution from the 401k provider.  The 401k provider will ask for the new IRA account information to have the funds transferred electronically.

I’ve moved 401k accounts into rollover IRAs at Vanguard and Fidelity, it’s relatively painless.

Thanks guys. That is what I will plan on doing.


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