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Can you leave your 401K at the investment house that your company uses when you are fired from your job?


Can you leave your 401K at the investment house that your company uses when you are fired from your job?

Yes you can. Problem is you can't add anything to it. Best bet is to rollover into an IRA if possible. You will have more choices than you will in a 401k program.

Be careful though...many companies have a set limit on what you can leave. I think the limit is around $5,000 for some companies. What this means is that if you have less than that amount, the investment company may not want to manage it. They will send you a letter stating that you need to do a rollover within 60 days or you'll take a tax hit. (This happened to me and I almost missed the date!)

Not a big deal but watch for the letter. If you miss it, you could get hit with taxes and a penalty and a much smaller amount than you started with.

HTH...

yes, it won't move unless you move it yourself... When you get to your next job, see if they will deposit to it. If not, you have to do some paperwork to transfer it to one your new job uses.

probably not...roll the 401k into a Traditional IRA CD at your local bank/credit union, but first go to www.bankrate.com and find the highest rate of return and present to the financial institution to rate match it.

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