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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.
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First and foremost, if you can possibly avoid having your hands on the money, do ! The best is to have the money directly roll over to the IRA. If you can't make a decision, my suggestion would be throw it in a Vanguard Money Market for the moment. You can always move it to the index fund or see up a self-directed IRA with their brokerage. But if the money goes to you before it goes to Vanguard, they have to withhold the taxes, even though you may not end up owing them so don't touch the money ;)


RF..
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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.

Regards…..Pixy
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Thank you to TMFPixy and RecoveringFool.
It was great help!
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