What to do with 401(k) rollover?

[picksthemusic]

I changed jobs at the beginning of the year, and I have some retirement fund money to roll over from my previous job (a little over $37k). I now am enrolled in a PERS2 account with my new job, so it doesn't seem feasible to roll it over to that plan (though I haven't looked into if I can do that or not). Anyway, we have a separate managed retirement investment account that we started about 10 years ago when DH got laid off from a job he had for 25 years and had a large 401(k) built up. I left another company at the time, and added my sum into that as well. It's our nest egg.

I'm trying to decide if I should put the rollover money from my last job into a HYSA for a short time to grow it, or if I should open another type of investment account. I will of course talk to DH about this since it's 'his' money too, but I want to see if we can grow it more quickly than a traditional managed IRA we have now. I will also be contacting our financial advisor, but wanted some outside opinions.

Thanks!

[dutchgirl678]

I just dealt with a similar issue. If you roll it over into the managed retirement account, you won't have to pay any taxes, but if you take it out and put it into savings you have to pay taxes over that amount (possibly around 10%). I would talk with a rep from the company where you have the investment account to ask for more details.

[HitchedIn2006]

There will be a 10% penalty, in addition to customary taxes, if you do not roll it over to another qualified retirement plan (such as an IRA) within 60 days of the withdraw. I would not recommend a HYSA. I would put in with your nest egg… maybe chose different performing funds!

[picksthemusic]

Apr 17, 2024 15:57:29 GMT -5 HitchedIn2006 said:

There will be a 10% penalty, in addition to customary taxes, if you do not roll it over to another qualified retirement plan (such as an IRA) within 60 days of the withdraw. I would not recommend a HYSA. I would put in with your nest egg… maybe chose different performing funds!

This is really what we need to do. We haven't had a meeting with our financial folks in several years (I know, we're horrible with that kind of stuff), so it's time for sure to get that rolling. I'd like to have a little more leeway with what stocks we want to invest in and such. We just need to have the conversation.

I appreciate the responses!

[RockNVoll]

I had to look up what a PERS2 account is and it appears to be a state pension plan so no, you most likely won't be able to roll your 401(k) money into it (I'm assuming it's a 401(k) you're rolling from).

What is a "managed retirement investment account"? Is it with a company that charges you management fees? Are they investing your money into mutual funds or individual stocks?

You mention wanting more leeway on what stocks to invest in, but from what you've said so far about your level of interest and involvement in this stuff, individual stocks probably don't make sense for you versus mutual funds or ETFs.

[definitelyO]

I rolled it into an IRA - can you do that?