Skip to main content
No. of Recommendations: 1
Greetings, Richard, and welcome. You asked:

So if I started a 401(k) now, what happens if I only have 6months of contributions? Is it possible to transfer 401(k) funds to a new fund at relatively low cost - eg. a bit like with IRAs?
Or do they just collect, so that when I retire I might have a dozen different 401(k)s?

If you begin a 401k now, and then leave that job in six months or so, you may arrange to have that money transferred to an IRA of your choice. If there's more than $5K in that account, you can even leave it in the old 401k if you desire. If you have less than $5K, most plans will force you to get the money out of the plan. It's possible you may even be able to transfer the money to a new employer's 401k plan, either from the IRA you set up to receive those funds or from the old 401k plan itself. The new 401k plan, though, does NOT have to accept transfers of old 401k plan money, and many plans don't.

Bottom line: You can always transfer that money to a traditional IRA. You may be able to transfer it to a new employer's 401k plan as well.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.