401K plan question

[rvtraveler]

My husband has contributed to a 401K plan since 9-2007. He just recently left the company he was working for and would like to know what happens to his plan now. Do we have to change something or withdrawl his the funds and move it somewhere else? Help. Confused.

[sweeps]

Check your plan documents, but usually:

If his account has less than $5,000 in it, he will need to roll it over to an IRA. If it has more than $5,000 then he can usually keep the funds where they are, however you will probably want to roll over anyway.

Be sure the rollover happens directly from his former company to the IRA administrator, otherwise taxes will be withheld.

[responduser]

My husband has contributed to a 401K plan since 9-2007. He just recently left the company he was working for and would like to know what happens to his plan now. Do we have to change something or withdrawl his the funds and move it somewhere else? Help. Confused.

IMO, rollover to the IRA.

[jIM_Ohio]

My husband has contributed to a 401K plan since 9-2007. He just recently left the company he was working for and would like to know what happens to his plan now. Do we have to change something or withdrawl his the funds and move it somewhere else? Help. Confused.

A rollover IRA is an option on the table now, Contact a company like T Rowe Price or Fidelity and they can help you with the rollover free of charge.

[rvtraveler]

Thank you all for your help.