Best to open an IRA account and than Roll-Over 401K into that account. Otherwise will be a 10% penalty for withdrawal prior to 59 1/2 plus all will be added to your income for this year. Taxed as income.
Hi Peter, Is it better to leave the money in 401K or move it to IRA? I see that IRA is having different kind of fees and it is creating lot of confusion to choose the best IRA. I see that if i leave money in 401K, they are charging fee of 35$. Will my money grow more in IRA compared to 401K after deducting fees etc., in IRA.
Hey Hari, an IRA is an investment bucket, like a 401K plan. However, you can do anything in an IRA. You have limited choices in a 401K. To roll over a 401K, contact the HR department of your previous employer and have the check put into an IRA with 60 days(time limit)
Hi Peter, Is it better to leave the money in 401K or move it to IRA? I see that IRA is having different kind of fees and it is creating lot of confusion to choose the best IRA. I see that if i leave money in 401K, they are charging fee of 35$. Will my money grow more in IRA compared to 401K after deducting fees etc., in IRA.
Pls advise me