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I am a financial dunce, and having to figure out anything beyond a very basic budget completely stresses me out.<br><br>
Dh left a job a couple of months ago and has a small amt (< 5k) in a 401k. We need to roll it over, but I have no idea what that means or how to do it. He is not yet eligible for 401k in his new job but will be doing that as soon as he can.<br><br>
I work as a consultant for a state agency and have a "forced retirement" account. I think it's a mutual fund account, though honestly I'm not sure. I know it is not a 401k or 403b. I am hoping to leave that job at the end of this fiscal year, and had hoped to take out that money to use for living expenses for the summer, but I don't know if I can do that without penalties? I talked with HR but they weren't really helpful, and the fund management is switching from ING to some other company, so I can't call them until the end of the month.<br><br>
I hate that I'm in my 30's with zero knowledge of how this stuff works. Can anyone give me suggestions and/or a crash course in finances?
 

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First of all you: Your retirement is probably in something that (in my state) they call a Public Employee Retirement Fund. You need to sit down with someone in HR and have them explain the program to you and if you will have penalties (I'm about 99% positive you will because most do) if you withdraw the money.<br><br>
For your husband, he needs to ask his previous employer if they allow him to leave his 401(k) where it is and for what length of time. He probably can until he gets his 401(k) started at the new job. What rollover means is that he will transfer that day's current market value of his old 401(k) directly into the new 401(k) account (or Traditional IRA account if that's the way you want to go).<br><br>
When he is ready to roll it over, he can either roll it into his new 401(k) at the new job or into the Traditional IRA. Which one should you roll it into? Depends on how good the new 401(k) is. If it gives you good choices of mutual funds, then that's probably the best route to go. To roll it into the new 401(k), he can coordinate with the HR dept. at both jobs and have them do the transfer. If you want to roll it into a Traditional IRA, you need to sign up for an account with the mutual fund company of choice (my personal one is Vanguard, but Fidelity and T. Rowe Price are also good ones... and even more decent ones). You will open the account with $0 balance and it will be earmarked to receive a rollover. You coordinate with old job HR to have them transfer the money to that new account and then you pick the funds you want to put the money into.<br><br>
Does that answer your questions?
 

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I would NOT rollover your DH's old 401K into the new job's 401K. Most 401K plans don't have a wide variety of mutual fund choices.<br><br>
I would do what I did - roll the old 401K over into a traditional IRA. I *really* like Vanguard.<br><br><a href="http://www.vanguard.com" target="_blank">www.vanguard.com</a><br><br>
Go to their website and read the fund info. You can do it by phone or online. They'll give you all the directions you need to follow, including where the check from the old 401K has to be sent. It was very easy.<br><br>
VERY IMPORTANT NOTE: when your DH's old job sends the 401K money check to the investment company - it MUST be made out to DH name%investment company. This is important because if it is made out only to your DH - there are tax implications - it looks like you're getting a payout.
 
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