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What should I do with an empty 401k?

I emptied out my old 401k during a particularly difficult financial time. Is there a way to get rid of the old 401k or combine it with my new company's 401k?

Mar 14, 2012 by Jerome from Hagerstown, MD in  |  Flag
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Don Level 19

Hi Jerome, You need to contact the recordkeeper for your old 401(k) and tell them you want to close it, which should be fairly easy if the balance is indeed 0 and there are no outstanding loans against it. If there are still a few dollars left in it, the simplest thing might be to take an early distribution and pay the nominal taxes and penalty. If there's more than a few dollars you might want to see if your new 401(k) plan will allow a rollover into it. Barring that, you can roll over the old 401(k) into an IRA, but that probably only makes sense if you have at least a few hundred dollars in it.

Comment   |  Flag   |  Mar 14, 2012 from Middlebury, VT

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