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The -- -- -- you confused about what to do with your 401K we've got you covered in a new segment we're calling 401K.
The segment here to help answer your questions today is David Wright.
President of the -- profit sharing and 401K council of America here is a question from Mary from Ohio this is -- an acquisition.
The company I used to work far I'm gonna need to quickly roll over my.
Former 401K plan to an individual IRA how to protect myself though from from possible losses how -- replaced.
Institutional investment fund of funds available.
Of the IRA's and also will this cost me more.
Complicated questions is concerned about the timing.
Well -- If there is going to be.
-- period when a person's going to be out of the market when they transfer from their old 401K into an IRA.
On if you want to shorten that period down -- you might wanna consider the hire a of the plant the company that was working with your 401K if that's a possibility.
The other thing to say is that even if you move your money directly over into the exact same investments.
I had an -- the -- are probably going to be somewhat higher because your employer is able to negotiate lower fees and a 41 K.
Because of the scale of.
OK here's another one for you David disciplines from John could you explain the process for rolling over.
A 401K into a qualified by our way.
I like -- when you when you terminate employment your employer is going to give you a form to fill out.
So save that more.
Goal and find and -- -- provider that you like and then complete the form with the information that irate provider gives you.
Then return that to your plan sponsor.
And then that will generate the process.
And then that money will then be given to you to put into that IRA to check will be made -- in the name of the IRA.
-- so that you're not you know taking on some tax liability and it's all very smooth but the -- is.
Use the forms the company gives you follow that process.
And other severe weather loving -- -- just getting a couple more emails and I wanna get one more before we go this is from -- visit my husband and I can't get approved to refinance our home.
We want to pay down our debt she -- use some of our 401K savings.
To do that should shape.
Thought it depends on of course your tax situation.
You know -- -- -- 41 K plan is going to be growing in their tax deferred unlike other kinds of investments.
If you take money out of your -- -- your 41 -- -- paid on debt.
You have to pay taxes on that distribution if you're under 59 and a half you're gonna have to pay 10% more so you might be -- in order that.
To do what dollar of -- down on your -- you might have to take out.
-- dollar eighty -- eighty cents to the government so in most cases it does not make sense to take money out of your 41 K.
David -- thank you that is terrific advice don't take the -- you're gonna get shot double triple times -- the taxes let.
-- -- right back thank you 10% penalty and you can't say if all of you -- don't worry we're going to be doing this every Friday so there will be an opportunity for your question to be answered in the meantime.
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