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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: of 76418  
Subject: Re: 401(k) to IRA Date: 9/26/1998 11:08 AM
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Greetings, Skavious, and welcome. You asked:

Im looking for a little help on where to move (rollover) my 401(k) funds. Im leaving my current job for a job that unfortuneatly does not have a 401(k) plan. Ive been looking at some IRAs but not getting much helpful information. If anyone has some suggestions how to handle this without getting hit with penalties would be much appreciated.

If the amount is $5K or over, you can leave it in the 401k plan until you decide what to do with it. Otherwise, to avoid taxes and penalty you must transfer it to an IRA of some type. RecoveringFool was dead on when she said to avoid problems you should arrange for a direct transfer of the money from the plan custodian to the IRA custodian. She was also, IMHO, correct in saying Vanguard's Money Market Fund (and as an aside, even the S&P500 Portfolio) is a great place to stash the funds until you decide what to do with it over the long term. To get it there, just contact Vanguard and your plan administrator. Both will guide you through the necessary administrative hoops for the transfer.

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