Hi All,
I recently changed jobs (the company was sold and my employment ended when the transaction closed) and now I have a very small (sub $1000) 401(k) account from that employer that I need to do something with.
It's through Guideline and they are giving me 4 options:
- Roll it over to a Guideline IRA (subject to $2/month in fees)
- Roll it over to another Guideline retirement account (I don't think I qualify as my new employer does not use Guideline for it's 401(k).
- Roll it over to a non-guideline qualifying account
- Get a cash disbursement (subject to a 20% withholding and 10% penalty).
I have a 401(k) through Fidelity from a former employer (my main account that I never rolled over to my last employers program) but since I'm no longer employed there I am unable to roll the funds from my Guideline 401(k) to my Fidelity 401(k). Fidelity offered to help me set up a rollover IRA but I'm not sure the implications of that.
I've never had an IRA in the past so I'm trying to figure out what the correct option in. My new employer does have a 401(k) through Principal but I haven't been focused on it as there is no match.
Can anyone suggest what my best option is?
original posted by Shatteredreality to r/personalfinance on Wed, 13 Mar 2024 16:04:38 GMT.