What to do with 401K after laid off

[Zillionaire]

What're you going to do with your 401K for the next 30 years? One of the credit union in town offers pretty high rate up to 4.25% for 5 years contract. Is it a wise idea to do that? Please gimme some inputs

Thanks

[Broken Arrow]

30 years?

My basic plan is to eventually have it converted to Roth, and investing in the Target Retirement Fund 2040.

Please consider a diverse asset allocation for long-term investing, not just CDs....

[disneysteve]

I agree with BA. Roll it over to an IRA and keep it diversified. CDs don't have any place in a retirement plan for someone with a 30-year time horizon.

[Goldy1]

My dh got laid off and had his returement 401K with ING from work. We got a call from an investment guy there who offered to actively manage it for a fee, but we don't need the account activiely managed considering it is in a target retirement account.
It' snot impossible that dh's last company goe sout of business at some point, but we were told the money is safe. He was already vested but you get vested anyway if not already.
I think he can just leave the money in there for a while and possibly roll it into a future employer's 401K if and when that transpires.
I do not plan to convert it to roth b/c the taxes would hammer us. I can't see any reason to do anything but leave it where it is now. ??

[disneysteve]

I think he can just leave the money in there for a while and possibly roll it into a future employer's 401K if and when that transpires.
I do not plan to convert it to roth b/c the taxes would hammer us. I can't see any reason to do anything but leave it where it is now. ??

Whether or not you can leave it where it is depends on the individual plan and, sometimes, the amount in the account. Not all companies allow this option.

You don't have to roll it into a Roth and pay taxes. You can roll it into a traditional IRA.

The usual reason to pull it out is to put it in an IRA where you have better investment options. If you are happy with how it is currently invested and the expenses are low, leaving it there is a perfectly good option.

[snafu]

Goldy1: Who is currently managing DH's 401K? What qualifications? What is the fee? Is the fee direct or MER or??? What is held in the a/c? Has DH been getting an annual/quartery statement?

[nylchicago1]

Hello,
You can rollover the 401k to a fixed asset without having any tax hits. It can be fixed at about 5.5% for about 5 years. I work for New York Life and I am doing these daily it really helps out. We are also the highest rated and most financially sound company in the industry. Let me know if I can help.

[lebaggblu]

Based on what figures?

[jIM_Ohio]

take the 401k and put it in a rollover IRA invested very similar to what the 401k was invested in before.