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|Subject: Re: converting a 401-k||Date: 3/4/2002 4:24 PM|
|Author: TMFPixy||Number: 7821 of 19740|
Greetings, Richardhollander, and welcome. You asked:
My daughter has about 20K in a 401-k from her former place of biz. I gather that the money can be removed from that particular entity and rolled somewhere. she wants me to invest the money which I agreed to do (while guaranteeing her no losses- how did I agree to that?). Anyway, I suggested moving to an internet brokerage and just giving me access to it.
Does anybody have any suggestions for:
1. Good online brokerage- Scottrade, USAA, etc.
2. Any particular caveats to moving one of these accts. or do the firms handle all the details as in moving a Roth IRA?
In answer to question 2, see my article "Transfer or Roll Over Your 401(k)?" at http://www.fool.com/retirement/retireeport/2001/retireeport010312.htm for details on how to move the 401(k) money to an IRA. Ignore the caveat on maintaining a separate IRA for the transfer. Since the article was written, it is no longer necessary to keep 401(k) money "untainted" by other funds. For details on that issue, see "Even More Money for Your Retiremen