If you left or lost your job, here is what you can do with your 401(k) investinyou (In partnership with acorns.)
Focus on more immediate cash flow needs and let your 401 plan sit for now."Interview several," Johnson said. He also recommends that in addition to their credentials, make sure that you like the person.Once you open a new IRA, you can request distribution paperwork from your previous employer. You'll need the new IRA account number for these forms. Your old plan may directly send the check to the new provider.
Be sure to deposit it into your new account within 60 days, because if not it will be considered a withdrawal — and you will be taxed and penalized, Berra warned.If you lost your job and want to move your money out of your former employer's 401, this could be a great year for a Roth conversion, since your income has dropped, Berra advises.
You make the contributions after tax, as opposed to pre-tax as with a traditional IRA or 401. That means the money grows tax-free and you aren't hit with taxes when you make a withdrawal. "The market is down, so it might be a good time to put that money in now to have that growth on that money," Berra said.
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