How much time do I have to transfer a 401K ?

Question

I have a 401K held by Wachovia, and in light of their condition, I want to transfer it closer to home in case of anything dramatic (the nearest office is 20+ miles away).

Can I just withdraw it / close it - get a check, and then take it to my local BankOfAmerica and set up a 401K ?

Not sure how it works . . .

Answer 1

DO NOT CLOSE IT OR WITHDRAW IT OR "GET A CHECK".  If you do, it will be subject to penalties and taxes.  If you want to roll it over to somewhere closer to home like B of A then go down to B of A and open the IRA.  They will give you rollover papers to sign and then B of A will handle the transfer of the money and you won't have to pay any penalties or taxes.

Answer 2

Do you mean an IRA?  A 401(k) is an employer-sponsored account and you must stay with the custodian selected by the employer.

Answer 3

You have 60 days to "play with" the money before you have to put it back into a qualifying account before penalties kick in.  If I were you I would find another place for it before I moved it and let that bank roll it over.

Answer 4

you can't roll money out of your 401k if you're still employed unless your'e age 59 1/2 (and the plan allows).  Nor can you just close or withdraw the account.   The 401k account is not in your name. It's in the name of the 401k trust for your benefit and the trust is not allowed to pay it out unless the law says it's ok.

That being said...it's in a 401k and those assets are actually invested rather than held in cash or loaned out.   Wachovia's trust dept is completely seperate from their banking division. Even if Wachovia were to go under they wouldn't be liquidating your shares.  If they were to try there would be personal liability on the part of those who did it which no one is willing to risk.  Would you do it for your company?  Knowing that you will have to repay every cent (and not your company's insurance?) Your 401k is safe.   I'd worry more about the company's that I'm invested in being stable then I would about Wachovia's banking problems.