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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: Re: Foolish 401k Rollover to IRA Date: 2/15/1999 2:03 AM
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eeh007: I believe that Snootfool's comment was correct but did not focus on a part of your statement.
You said "I currently have about 2,000 dollars in my 401k account through my employer." I am not sure that you will have the choice to let your moeny in your soon to be former employer's 401-k plan, because it is less than $3500 (former amount, I have heard, but not checked the rules that the threshhold amount has been increased to $5000). Below the threshhold amount, employers are not obligated to maintain the account after you leave - either do a trustee-to-trustee transfer (my preference) or take a distribution (80% of the amount because the employer will withhold 20% for taxes) and then reinvest the total amount of the account (100%) within sixty days or pay the taxman for the distribution - regular income tax plus 10% penalty if you are less than 59 1/2.

Regards, JAFO
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