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Subject:  Re: Downsized - what to do with 401(k) Date:  4/26/1998  3:36 PM
Author:  TMFPixy Number:  3051 of 88532

Greetings, Shaniqua, and welcome.

<<What options would he have for his 401k monies? Because of the lack of acceptable investment options, I'm not sure we would want to leave it at the current employer. And if we did leave it there, could we transfer it elsewhere at any time?>>

Your husband may transfer all the monies in his 401k plan to an IRA when he leaves his job. Any broker and your husband's plan administrator can guide him though the hoops to do so while avoiding any and all tax hassles. Be sure he asks for a direct custodian-to-custodian transfer from the plan to the IRA to ensure those hassles are avoided. As to the IRA, he is free to invest in any mutual fund or to use a self-directed account within which he may trade individual securities.

As to timing of the transfer, that's up to the plan documents. Some restrict such distributions to certain times of the year such as quarterly or semi-annually. His employer can tell him about that issue.


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