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Subject:  Re: 401K Rollover Date:  1/24/1999  12:55 PM
Author:  TMFPixy Number:  8071 of 103820

Greetomgs. BrettJones, and welcome. You wrote:

<<Both my wife and myself need to find a spot for our 401K rollovers. She quit her job and must withdraw it within 60 days. She will be staying at home with our children and not re-entering the workforce. I am no longer employed with the company that started my 401K. I can not contribute new money, although, I am not forced to withdraw my current money immediately. My new employer does not offer a 401K but they are in the process of getting a SARSEP setup. I am in the process of slowly learning about my investment options, although, I'm forced to do something within the next 30 days. Any advice?>>

Advice? No. The choices as to what you do with that money are up to you. However, both you and your wife may transfer your old 401k money to your own IRAs. Any mutual fund, broker, bank or insurance company (it depends on what you wish to use as an investment vehicle) can help you do that. Just contact the one of your choosing and tell them what you wish to do. They along with each of your plan administrators will guide you through the process. You should specify that you want the money transferred directly from the plan custodians to the custodians of each of your IRAs. Don't worry because they all know how to do that. Just follow their instructions, and you will encounter no problems. This direct transfer totally eliminates any potential hassles you might otherwise have with the tax man.

One other thing: If either of you thinks that at any time in the future you may wish to transfer that money to a new employer's 401k, then ensure the IRAs you establish are separate and distinct from all other IRAs. Also, do not make any other contributions to those IRAs. In so doing, you may later transfer that money and all its earnings to a new employer's plan that accepts rollover money from an old employer's plan.


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