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I was participating in a 401k for three years before I lost my job two weeks ago to corporate downsizing.
I now have a broker calling me and pressuring me to move that 401k money into another fund. Should I do this? I was thinking that I would just roll the money that I already have into my new 401k when I get another job. What is the right move here? Thank you!
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I was thinking that I would just roll the money that I already have into my new 401k when I get another job.

If your new company allows this and has good investment choices, this could work out OK. You can also leave your 401k at your old company if they have good choices and you meet certain criteria (have more than $X there). A real popular choice is to roll it into an IRA at a fund company that has the investment choices you want. I'm pretty sure you can roll that IRA into a future company's 401k if you don't ever comingle the 401k rollover IRA with any "regular" IRA money. For the maximum flexibility, keep the rollover money separate.
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I lost my job two weeks ago to corporate downsizing.

I'm sorry to hear that.

I now have a broker calling me and pressuring me to move that 401k money into another fund.

Is this broker your 401k rep or is it some guy called "Honest Joe" who is trying to interest you in his investments?

If you have less than $5000 in your 401k, your employer can indeed cash you out. If you have more than $5K, they have to let you keep it there (although, the company is abolishing its 401k or going bankrupt, I'd get it out now while the getting is good).

In the absence of a new employer (or a new employer who doesn't offer a 401k plan, or whose 401k plan doesn't accept rollovers or whose 401k plan investment options doesn't tickle your fancy), you can roll it over to a "Rollover IRA."

Good Luck,
JDOyster



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