Author Topic: 401k - when you leave your job and want to roll it over  (Read 346 times)

freedomfightergal

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401k - when you leave your job and want to roll it over
« on: January 10, 2019, 12:51:15 PM »
So I left an Employer about 10 months ago and just finally decided to transfer the small 401k funds into a Rollover IRA.  I just contacted them to initiate it and they tell my my prior Employer has "frozen" the funds as they are moving their account.  UGH.  I had read someone saying somewhere to move asap any Employer managed retirement accounts. I wish I'd moved it asap.  My prior Employer has been bought out.

I am also annoyed that I'd worked for 2 years and finally asked what was going on with my retirement (part of package) and they discovered they'd forgotten to set up my account!! So they set up one with a deposit to match just the contributions.   This amongst a whole other bunch of crazy mismanagement had me leave because I couldn't stand the place anymore. Luckily I had F U money!  Because I totally did a FU!

lesson learned - make sure your 401k is set up and move it asap after leaving a job

FIRE@50

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Re: 401k - when you leave your job and want to roll it over
« Reply #1 on: January 10, 2019, 12:55:24 PM »
I know this doesn't apply to your situation, but others should be aware that leaving your 401k with your previous employer after FIRE can have some benefits(or even be required) if you plan to use SEPP or if you retire between 55 and 59.5 years of age.

BoonDogle

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Re: 401k - when you leave your job and want to roll it over
« Reply #2 on: January 10, 2019, 01:57:50 PM »
Sorry for the bad experience.  Just so you are aware, there are certain rules that any employer has to follow regarding their 401k plan.  For instance, if they failed to deposit timely a contribution or match that should have been made earlier, they must also compute and deposit lost earnings on those dollars.  They also must give you the opportunity to participate when you first become eligible.  If they fail to do that, they must make a deposit into your account for lost opportunity.

If you think you have not been treated in accordance with the terms of the Plan or the law, you can contact the Employee Benefits Security Administration division of the Department of Labor.

Eric

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Re: 401k - when you leave your job and want to roll it over
« Reply #3 on: January 10, 2019, 03:07:25 PM »
I know this doesn't apply to your situation, but others should be aware that leaving your 401k with your previous employer after FIRE can have some benefits(or even be required) if you plan to use SEPP or if you retire between 55 and 59.5 years of age.

Why would it help when using SEPP? 

gpyros85

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Re: 401k - when you leave your job and want to roll it over
« Reply #4 on: January 11, 2019, 12:25:39 AM »
This reminds me of the time I called out HR managment with a highly detailed email about the cliff investment when we were bought out from another company. It was a 5 year cliff but since we were bought out it immediatly invested. Let's just say once a few people found out they were automatically vested after the merger some faces did not stick around!