What does everyone do with their 401k after being laid off?
16 replies (most recent on top)
Roll it over to an IRA and self-manage it. I have generated a much higher return. Empower has $hit investment options.
Heh, I retired.
Cheers!
“I'd roll it over to an IRA. That way you can invest in cheaper and individual stocks.” Just never plan to do a back door Roth then as IRAs are weighted where 401ks aren’t when doing that (and possibly other conversions).
Party dude
I think the decision comes down to whether you want advice on how to invest your money. I liquidated and moved the money to an IRA in order to have more investment choices as well as advice. I’ve done well but the market has done well. In hindsight, I paid commissions to my FA to reinvest that money whereas I maybe could have just let it roll in the 401K and done just as well.
I asked the representative when he called if there was penalties or fees if I left it there for now. He said “no”. However, now seeing comments here… I’m a little worried he was not being totally honest.
I plan to move mine but don’t want to deal with WF disclosure BS. So sick of asking “mother may I “. But I may need to sooner than I planned.
I'm making 48 percent now with empower.. I'll test other companies to match or best before moving funds around
Roll it into an IRA somewhere else. Empower will charge you a fee at the next anniversary date. They are waiving it now as an employee but once that employee flag gets removed, a fee will come.
I left earlier this year and my CFP told me to roll it over, as he felt there were better investment options. He’s a family member, so not trying to make money on me.
I'd roll it over to an IRA. That way you can invest in cheaper and individual stocks.
Sorry, yes, meant penalty (10%) free, not tax free. Unless it’s the Roth 401k portion.
They reached out to me and discussed my options. I have left it there for now. I’m over 55 and I quit. Left for a better opportunity. Best decision.
Does empower charge you a fee to keep it there?
Over 55 here. I just left mine. I'm fine with the investment options for now.
Not tax free but penalty free. Taxes still owed if you don't roll it into something else.
If you are over 55 or close, leave it there if you think you will need to tap it before 59-1/2, because you can withdraw tax free after 55 from your 401k if you leave that employer. Otherwise, rollover makes sense. Also look into NUA if you have a lot of WF stock and it was acquired at a low price.