Anyone have ING but switch?
Originally Posted by mcdrama
It's been over a year, but since I have more then $10K in it Fidelity doesn't require me to roll it over or pay them money.
Did you have a fidelity rep tell you that you can sit on the check for as long as you want?
After I left my old company, they said I had 6months to decide (I was required to cash out or roll-over since the company went under). After that they mailed me a check and I had a tax liability. I worked it out w/ my acountant.
Just letting you know that once its cashed out...it's not as easy to roll-over.
i've considered CDs, but so far, I think I need to know I have the option to use it.
Can't compare CDs w/ Money MArket Accounts (ie ING). They are differnet savings vehicles.
Last edited by BOOOST4; Oct 26, 2006 at 03:22 PM. Reason: spelling
the artist formerly known as mcdrama
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Originally Posted by BOOOST4
uncle sam isn't going to like that.
Did you have a fidelity rep tell you that you can sit on the check for as long as you want?
After I left my old company, they said I had 6months to decide (I was required to cash out or roll-over since the company went under). After that they mailed me a check and I had a tax liability. I worked it out w/ my acountant.
Just letting you know that once its cashed out...it's not as easy to roll-over.
i've considered CDs, but so far, I think I need to know I have the option to use it.
Can't compare CDs w/ Money MArket Accounts (ie ING). They are differnet savings vehicles.
Did you have a fidelity rep tell you that you can sit on the check for as long as you want?
After I left my old company, they said I had 6months to decide (I was required to cash out or roll-over since the company went under). After that they mailed me a check and I had a tax liability. I worked it out w/ my acountant.
Just letting you know that once its cashed out...it's not as easy to roll-over.
i've considered CDs, but so far, I think I need to know I have the option to use it.
Can't compare CDs w/ Money MArket Accounts (ie ING). They are differnet savings vehicles.
I was told that I had 6 months to roll it over unless it was over a certain amount(was 9K or 10K). I've not received a check in the mail yet and it has been almost a year and a half.
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Originally Posted by mcdrama
I was told that I had 6 months to roll it over unless it was over a certain amount(was 9K or 10K). I've not received a check in the mail yet and it has been almost a year and a half.
If your vested 401(k) balance is $5,000 or less, your employer can require you to take your money out of the plan when you leave the company. (Your vested 401(k) balance consists of anything you've contributed to the plan, as well as any employer contributions you have the right to receive.)
Leaving your money in your old employer's 401(k) plan may be a good idea if you're happy with the investment alternatives offered or you need time to explore other options. You may also want to leave the funds where they are temporarily if your new employer offers a 401(k) plan but requires new employees to work for the company for a certain length of time before allowing them to participate. When the waiting period is up, you can have the plan administrator of your old employer's 401(k) transfer your funds to your new employer's 401(k) (assuming the new plan accepts rollover contributions).
Leaving your money in your old employer's 401(k) plan may be a good idea if you're happy with the investment alternatives offered or you need time to explore other options. You may also want to leave the funds where they are temporarily if your new employer offers a 401(k) plan but requires new employees to work for the company for a certain length of time before allowing them to participate. When the waiting period is up, you can have the plan administrator of your old employer's 401(k) transfer your funds to your new employer's 401(k) (assuming the new plan accepts rollover contributions).
Originally Posted by BOOOST4
Do you really mean "index fund"?
Those are like buying a little bit of everything, so the entire market has to go up for the index to do well.
You'll probably want something more specific...more like mutual funds which is a much smaller group of stocks compared w/ an index.
Those are like buying a little bit of everything, so the entire market has to go up for the index to do well.
You'll probably want something more specific...more like mutual funds which is a much smaller group of stocks compared w/ an index.
ok not "index" but you know what I mean. Fidelity allows you to pick a wide range of funds, small, mid, and large cap funds (from various institutions, I favor the vanguard funds), and they also allow you to picks bonds, money market accounts, foreign funds, etc etc
401k is just the type of account, you you invest it is 100% up to you
andyf is right. If it is below $5k, the company cannot force you to withdraw or rollover. But if it is under $5k, the company can force you to withdraw, rollover, or cut you a check; or if they want, they can choose not to do anything and keep your >$5k balance in their plan.
You can rollover any time from a previous employer's 401k to your current emplyer's 401k, or a rollover IRA account, any time you want.
You can rollover any time from a previous employer's 401k to your current emplyer's 401k, or a rollover IRA account, any time you want.
Hmm.. Good topic. I am going to start my first 401k tonight if I can. It's about 5 years too late, but better late than never I guess. I tried to set one up a couple years ago but was intimidated by the list of "funds" to put my money in with zero description of anything. Hard to choose from just a list. Is there any way to competently choose where your money is going? I will also be with Fidelity.
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Originally Posted by wombatsauce
Hmm.. Good topic. I am going to start my first 401k tonight if I can. It's about 5 years too late, but better late than never I guess. I tried to set one up a couple years ago but was intimidated by the list of "funds" to put my money in with zero description of anything. Hard to choose from just a list. Is there any way to competently choose where your money is going? I will also be with Fidelity.
. Just in case.
Originally Posted by sonicsuby
I have Fidelity. You can play around with the growth strategies on their site and they will pick the funds for you. Just make sure you're not all in on your employer . Just in case.
. Just in case.
I have a stupid n00b question on CDs...
With the ING 6 month cd at 5% APY, if I opened one, at the end of the maturity date, would my interest paid technically be 2.5%, or half of the 5% because it's not a full year?
So let's say I opened a 6 month cd 5% APY with $1000. At maturity, would my total interest paid be ~ $25 or ~ $50?
With the ING 6 month cd at 5% APY, if I opened one, at the end of the maturity date, would my interest paid technically be 2.5%, or half of the 5% because it's not a full year?
So let's say I opened a 6 month cd 5% APY with $1000. At maturity, would my total interest paid be ~ $25 or ~ $50?
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To clarify some things...
You are ONLY required to rollover your 401K into another account if that is what is stated with your previous employer. In most cases, your previous employer will notify ING and they will automatically transfer that fund into a "savings account" that is monitored by them. I say "savings account" because you cannot contribute more money into it. The money sits there and continues to accumulate interest. You can opt to transfer the money into another "rollover IRA" account if you should feel inclined to do so. IF you choose this route, your best bet is to invest in mutual funds. They are stable and reliable and allow minimal risks (and very good for long-terms savings).
Your previous employer may include stipulations. They may require you to have a certain amount in your 401K account to continue using their chosen investor (fidelity, ING, etc.). If this is the case and you do not have enough to meet their stipulations then you MUST find a "rollover IRA". There are 2 kinds of IRA accounts, and they are "traditional" and "ROTH". In most cases, people will fall under the "traditional" category and it is quite flexible to your needs.
I have a degree in accounting and finance so this is somewhat a specialty of mine. Hope this makes sense.
You are ONLY required to rollover your 401K into another account if that is what is stated with your previous employer. In most cases, your previous employer will notify ING and they will automatically transfer that fund into a "savings account" that is monitored by them. I say "savings account" because you cannot contribute more money into it. The money sits there and continues to accumulate interest. You can opt to transfer the money into another "rollover IRA" account if you should feel inclined to do so. IF you choose this route, your best bet is to invest in mutual funds. They are stable and reliable and allow minimal risks (and very good for long-terms savings).
Your previous employer may include stipulations. They may require you to have a certain amount in your 401K account to continue using their chosen investor (fidelity, ING, etc.). If this is the case and you do not have enough to meet their stipulations then you MUST find a "rollover IRA". There are 2 kinds of IRA accounts, and they are "traditional" and "ROTH". In most cases, people will fall under the "traditional" category and it is quite flexible to your needs.
I have a degree in accounting and finance so this is somewhat a specialty of mine. Hope this makes sense.
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