401k rollover HELP????

Question

I had a 401k with Fidelty for 2yrs and now I have a new job that has a different 401k plan (Principal).

1) (How) Can I rollover my 401k into my new one with out taking a loss (penalty or % $ loss) of $$ . How do I do that and who does it get written out to?

and

2) How can I with not taking as much of loss of $$ from that fidelty 401k cash it?

Answer 1

It costs you nothing to roll over a 401k account to a new employer and 401k administrator. You first contact your existing 401k administrator and tell them you want to roll it over to another provider. They then have you fill out forms that you submit (either fax or on-line). They then submit a check either to you or to the new 401k administrator in that company's name. If they sent you the check, you forward it to the new 401k administrator. The funds then get added to you new 401k account.

Since the check is made out to a new 401k administrator and not to you, there is no way you can cash it and, therefore, no way you can take any money out of your 401k by transferring it to a different provider. So, there are no penalties incurred.

As to your second question, I once waited about 3 years to roll over a 401k after getting a job at a different company. There was no problem.

Answer 2

Crazeddoglady is correct that you can rollover your old 401k into the new 401k.  However, most people would be better off rolling the old 401k into what they call a 'Rollover IRA'.  This can be done directly at Fidelity, so that you would be changing from one account to another at the same investment shop. Ask Fidelity to assist you in doing this.  Fidelity does this all the time, and at no time would you directly receive the money, which is one problem area that often causes penalty situations.

The primary benefit of a rollover IRA versus combining the funds into your new 401k is that 401k programs have a limited choice of investments -- some are extremely limited, in fact.  Whereas the rollover IRA can be invested in any stock, bond, stock mutual fund, bond mutual fund, ETF, CD or money market fund.  If you switch to a rollover IRA at Fidelity, they have an extraordinary list of mutual funds and other investments that you can choose from.

Whatever your choice, if you arrange to have the investment money transferred directly from the old 401k to your new account, you are much better off, with fewer chances for s******g things up.

Answer 3

Honestly I don't think that it is possible without a lot of unnecessary fees you are better off cashing out of that one and opening a new personal 401k account. Then just start new with your other job unless you want to pay the fees that it cost to transfer

Answer 4

There is no penalty for rolling your Fidelity 401k to another custodian - Principal.  That's one of the main reasons rollovers are allowed.  The only time you are penalized is if you take the money and don't roll it over to another plan within the specified amount of time (60 days).  Just call Fidelity and give them the info on your new plan and they'll handle the rest.  You'll receive statements confirming everything.