401k..can that be rolled into a cd..?and if put into an ira and after few years, can i roll back into a 401k..

Question

Leaving present company and I will not be eligeable for 401k for about 14 months...I don't want to cash out.

Answer 1

all you can do with out penalty is roll to an IRA or  Roth IRA

Answer 2

Not sure if you could roll it on CD but I'm very sure you could on IRA,but why don't you go ask the administrative office of the company to make sure your doing the right thing.

Answer 3

You can't roll it into a CD.  You could withdraw the money and put it in a CD but you are subject to early withdrawal penalties and taxes (30-40%).  That is NOT a good idea.  I would suggest rolling it over into an IRA.  By doing that, you will avoid penalties.  Your situation should determine what type of IRA to roll over to.  If you plan on putting that money into another 401k in a couple of years, a traditional IRA is best.  If you want to leave that money in an IRA until retirement, then a ROTH IRA would be best (if you meet the income requirements) because your money will grow tax-free until retirement although you will have to pay taxes on the present amount.