A 401k rollover allows you the opportunity to take the 401k that you have with your prior employer and use the funds that you have already invested into a brand new fund with a new employer. Basically, you are simply taking the money back that you were paying into your retirement plan that you had with your previous employer.
With engaging in the 401k rollover there are a few good and bad things about the whole ordeal. A big benefit of the rollover is that regardless of how much money you have in your 401k many companies will still allow you to take the funds that you had invested.
In some cases companies may retort that you need at least a minimum amount of $3, 000 in your account before they can engage in rolling over your funds. Some people find it difficult to rollover their current 401k's when they have an amount in the fund that is under $5, 000.
There are a few things that detour people away from the rollover process. One thing that changes when you engage in a 401k rollover is the flexibility that you previously had with your fund.
Some plans also have higher fees depending on where you roll them over to. Before commencing in a 401k rollover you need to take heed of the fees that the company that you are currently working for charges for their 401k plans. A 401k rollover can be a good thing for people that have suddenly lost their main source of income for no apparent reason at all. It is a good rule of thumb to read all the fine print on the 401k rollover agreement to assure that you are getting everything that you need.
For more information on 401k and IRA rollovers contact P&G Financial Group, Inc. at: 1-888-701-3222 or visit: http://www.pngfinancialgroup.com.
Article Source: http://EzineArticles.com/?expert=Jason_Pollington
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