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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: morethanconquerors on March 18, 2020, 05:33:31 PM

Title: Rolling over 401k Right Now
Post by: morethanconquerors on March 18, 2020, 05:33:31 PM
My wife recently changed jobs, so we were going to roll over her 401k into an IRA. With the market the way it is right now, should we hold off on this? Her 401k is down about 20%, so the amount we would roll over is significantly less than what we were planning to roll over a month ago. Should the market have any impact on when we do the rollover?
Title: Re: Rolling over 401k Right Now
Post by: dandarc on March 18, 2020, 06:21:39 PM
Do you know the mechanics of the rollover? Will the assets be transferred in-kind? Will they sell everything and cut a check that might take weeks to process?
Title: Re: Rolling over 401k Right Now
Post by: tawyer on March 18, 2020, 08:17:14 PM
Same dilemma here, with 3 to rollover potentially. PTF.

Thanks @dandarc I did not know about in-kind transfer, I will have to ask.

Cutting a check sounds like market timing, which I am hesitant to act on even though I believe we have at least another month before a recovery from this point.
Title: Re: Rolling over 401k Right Now
Post by: NotJen on March 18, 2020, 09:32:48 PM
Even though I came out ahead, itís really stressful to do a rollover when the market is changing wildly:  https://forum.mrmoneymustache.com/investor-alley/why-did-i-choose-to-do-my-401k-rollover-this-week/
Title: Re: Rolling over 401k Right Now
Post by: ender on March 18, 2020, 09:34:00 PM
I would not want to initiate a rollover during weeks where every day the market has significant movement in either direction.

Could work out really well for you or really badly. If you want that risk go for it ;-)

Title: Re: Rolling over 401k Right Now
Post by: FatFI2025 on March 19, 2020, 06:07:14 AM
I initiated two rollovers mid-Jan and reinvested funds in mid-Feb. Wish I had been a few weeks later. In your shoes I think I'd wait until later in the year when the market calms a bit. That's market timing admittedly, but there are likely to be huge up days during the recovery that you wouldn't want to miss due to the rollover.