401k Rollver Question

Here is a question I was asked from a reader earlier this month:

“I have a quick question and wanted to see if you could provide some help. I was just laid off from my job. I have around $120,000 in my 401k at that employer. Does it make sense to move it somewhere else or just leave it?

Thanks – Dave”

Well Dave, here is what I would do. I would move it to an IRA so you can keep an eye on it. The reason I say this was I was laid off from an employer as well. I left my 401k with them. Six months later they filed for bankrupcy. My 401k got locked up in the bankrupcy and I couldn’t even get in to change my funds.

I bet you can imagine how important it is to have access to that account during a declining economy. Moving your 401k to an IRA will allow you to have full access to it with fees in most cases.

Here is a site that helps explain your options for completing a 401k rollover. It’s not as difficult as it sounds, but knowing your options is important. I suggest you check it out.