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Author: Will1225 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19224  
Subject: 401K Rollover Question Date: 5/6/2000 9:11 AM
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I recently retired. I have two IRA's (one a traditional IRA and the other a Roth IRA).

Question: Can I rollover my 401K into my traditional IRA or do I have to apply for a new IRA for that?
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Author: WauseonFox Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3846 of 19224
Subject: Re: 401K Rollover Question Date: 5/6/2000 10:48 AM
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Will1225:

Yes you may transfer custodianship from the custodian on your 401(k) to the custodian for your Traditional IRA. Contact the custodian for your traditional IRA, tell them what you are doing, and ask them to send you their transfer paperwork. They may also require you to complete a "Hold Harmless" agreement to assure them that you understand what you are forfeiting. As long as you are not planning on re-entry to the rat race; you are forfeiting nothing.

Enjoy Life!

--WauseonFox--

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Author: lenalena Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3849 of 19224
Subject: Re: 401K Rollover Question Date: 5/7/2000 12:38 AM
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You can rollover your 401K to a traditional IRA. You can do it as suggested in the previous message by letting the administrator of your IRA contact your 401K administrator. However, you may also do it by contacting your 401K administrator yourself. Make sure that you request a ROLLOVER and specify that the payee should be your IRA administrator FBO (for the benefit of) your name. By doing it yourself you can control how the money is transferred. If you currently hold stocks in your 401K you can request a stock certificate that will be transferred to your IRA. This can be advantageous if the price of the stock is currently depressed due to the recent market dive. Since it can take several weeks from the closing of your 401K account until you get the check, you can lose a lot of interest or appreciation while the money is in transfer. By transferring stock, you continue to be invested in the market during the transition.

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Author: 7keys Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3852 of 19224
Subject: Re: 401K Rollover Question Date: 5/7/2000 6:26 PM
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I'm sure I'm missing something big, and perhaps some kind fool will educate me. Why would you want to rollover your 401K into an IRA, assuming you can keep your money in your 401K plan and also assuming that the plan has sufficient diversity of investments to accomodate your needs. I know my current 401K plan has about 8 different strategies that I can change, daily if I want, at no, or minimum, charge. What would be the benefit of switching my money to my IRA?
jc.

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Author: telegraph Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3858 of 19224
Subject: Re: 401K Rollover Question Date: 5/8/2000 9:37 AM
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Your 401K had 8 options. You need to evaluate how well these options have done compared to other similar options. Having options is good, but if the fund performance fails miserably, or if the management fees are high (many 1-2%/yr), your returns will be substandard.

Compare your fund performance, year after year, and the fees in your funds, to Vanguard or Janus funds. If they beat the Vanguard S&P 500 and Vanguard Total Stock Market Index funds, then you are doing OK. If not, it is time to re-evaluate.

Having your own IRA, which could be at Vanguard, Janus, or anywhere else, gives you thousands of options. If you are at a discount broker, you can also add individual stocks and brokered CDs and bonds.
Long term, fund expenses are critical. A 1 or 2% extra bite, compounded over 20+ years, adds up big time. Many SP500 funds lag the Vanguard fund by 1 or 2% each year. That is tens of thousands of dollars after many years you have paid those fund managers, for doing what Vanguard does for 0.18%, allowing them to drive the BMWs and Lexus cars, have Rolex watches, etc. ( I tend to think of fund fees that way).

My current 401K has performed reasonably well, but sooner or later I will roll it over into the IRA which I started with my 'pension rollover'. I had to either take the cash value of the pension, or watch it wither until I could start collecting it in 10 years - they would have given me 4.5% annual 'interest' in those 10 years - bad deal. I moved it quick to Vanguard IRA.

If you are happy with your 401K fund performance, leave it there. If not, find a better place.

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