July 20, 2009, 1:12 pm
Aside from buying a standard life insurance plan for your retirement, there is another way for you to secure your later life while you are still employed. You can avail of a 401k retirement plan, a system in which specified amounts of money will be deducted from your payroll. The money can be used for several investment options, so that your funds will grow until the time that you will need it for retirement.
However, if you are changing employers, then you have to execute a 401k rollover plan so that the fund can follow you wherever you go. You can either complete the rollover to the 401k plan of the new employer or you can transfer the assets to an IRA or Individual Retirement Account.
July 20, 2009, 1:03 pm
If you have a 401k retirement plan and you are planning to move to another job, there are several options that you can do to avoid having to cash out your funds. One of the most recommended options is to do a 401k rollover to IRA.
First, you have to choose a bank, mutual fund company, or brokerage firm where you rollover your funds into. You have to open an account with that institution and comply with their rules regarding the 401k plan. There are certain charges that you need to pay for. If you encounter these, ask the advice of your reputable IRA custodian and see what he can do. There are other options that you can do with your account, such as transferring your existing mutual funds. This should be approved by the firm first before you can have it processed.