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Author: 747FlyingFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75592  
Subject: Getting Started Date: 4/30/1998 1:24 PM
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My current holdings include $35,000, 1/3 of which is in a previous-company sponsored 401(k) and the other 2/3 in my current-company sponsored 401 through Prudential. I would like to start investing in the Foolish 4, either in equal parts or as a 2/2/3/4/5 based on today's "F4" but would like to know how I switch from Prudential to a discount broker to take advantage of lower trading costs yet still preserve the tax-deferred advantage of my 401(k).
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Author: cable666 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3137 of 75592
Subject: Re: Getting Started Date: 5/1/1998 12:16 PM
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Sorry! You can not transfer your money out of your current employeer's 401K plan unless you leave the company (quit, fired, lay off, death, disability). Your only investment options for that money are the funds that your 401K offers.

You can transfer the fund's in your previous employeer's 401K to a self-directed IRA. Just be sure that the transfer is done directly from custodian to custodian, other wise you will be hit with taxes and fines.

Why don't you open up a self directed Roth IRA? Use that and your prior 401K IRA and start your Foolish Four investing.

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3145 of 75592
Subject: Re: Getting Started Date: 5/2/1998 8:36 PM
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Greetings, 747FlyingFool, and welcome.

<<My current holdings include $35,000, 1/3 of which is in a previous-company sponsored 401(k) and the other 2/3 in my current-company sponsored 401 through Prudential. I would like to start investing in the Foolish 4, either in equal parts or as a 2/2/3/4/5 based on today's "F4" but would like to know how I switch from Prudential to a discount broker to take advantage of lower trading costs yet still preserve the tax-deferred advantage of my 401(k).>>

You may transfer the old employer's 401k money to a self-directed IRA, but the current plan money must stay where it is until you leave that job. Ensure you arrange for a custodian-to-custodian transfer of the old plan money to avoid any tax hassle. Your broker and old plan administrator know how to do this and can gudie you through the administrative steps to do so. Once the money is in the IRA, you can then trade to your heart's content.

As an aside, if you put the old money in your new employer's plan, you won't be able to move it until you leave that job.

Regards....Pixy

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