Thread regarding General Motors layoffs

401K roll over to IRA

I got the axe, I was expecting it and I was the first one cut this morning. Anyhow, here is a bit more pragmatic question as I am transitioning out of GM. What do I do with my 401K? Can I roll it to IRA or Roth IRA and if yes, how do I do this? Do I have to wait or can I do it immediately? Alternatively, can I keep the funds untouched? I am assuming this will not trigger a taxable event.

Please chime in if you have any suggestions, I know it's not a financial help page but wanted to see what other GM folks are planning to do and what options are open to us right now. I am a relatively recent hire (4 years out of college) and this is my first job and my first layoff.

Please let me know.

by Anonymous
| 2140 views | | 11 replies (last ) | Reply
Post ID: @OP+XsJaq72
Comment! It's anonymous!

11 replies (most recent on top)

No hurry, so worry about other stuff right now. When you do get time, do as one poster suggested and let the brokerage that you're going to advise you how to do it by avoiding minimizing taxes. It's very important that you do not withdraw it yourself. The only advantage I can think of for leaving your money in the GM 401K is the fund called "Stable value fund." That is only available in 401Ks. If that isn't an important fund to you, then you are probably better served in an IRA.

It's possible for a traditional 401K (not a Roth) to have some "after tax" money in it. Be sure to ask you broker (if you move to an IRA) what they suggest you do with that money. It may not need to go in an IRA, you might get to use it to buy another GM car :).

by Anonymous
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Post ID: @1slc+XsJaq72

Roll over to an IRA, much better choice of investments. Control your own destiny.

Never roll it into your new employers 401k.

by Anonymous
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Post ID: @vtj+XsJaq72

Leave it in your current 401 K as someone else said. You don't have to do anything with it and you shouldn't until you have a chance to really think about. Everyone will try and sell you an IRA, but think twice.

by Anonymous
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Post ID: @vcz+XsJaq72

Leave it where it is until you take a financial advisor exam or see a trusted one with it and a series 7 or better with good ratings is honest and won't boast about all the money they have or make.

by Free to live well
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Post ID: @tng+XsJaq72

There are really no problems doing 401k to 401k. 401k to ira could cause tax complications for some people (but not all) due to the pro rata rule (see irs).

by Anonymous
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Post ID: @lfb+XsJaq72

First off, sorry about your lay off.

Yes, you can roll the 401K over to an IRA or a Roth IRA. There would be no tax issue for a regular IRa, but I think there would be for a Roth.

Contact the financial institution where you want the money to go and they will handle it.

We have done it twice with jobs changes. It's easy.

Good luck to you

by Anonymous
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Post ID: @agf+XsJaq72

go to netbenefits .com 1-800-489-4646 . it's very easy to do transfer(don't get check), but remember if you have Roth 401 it's need to go Roth IRA if just 401k its go to IRA

by Anonymous
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Post ID: @cwz+XsJaq72

you can roll it over into your new job's 401k instead of IRA.

by Anonymous
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Post ID: @mno+XsJaq72

@vbj what's the benefit of keeping it in 401k vs Fidelity IRA? Thanks...

@fat - yes, I am in Austin

by Anonymous
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Post ID: @tuq+XsJaq72

I would recommend you don’t move it out of 401 k plan. If you convert it into IRA then you will have to manage your investments and won’t have access to the funds that fidelity is giving you via the GM plan. In fact fidelity would want you to move out and call you. Just ignore their calls.

by Anonymous
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Post ID: @vbj+XsJaq72

where was it ? Austin

by Anonymous
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Post ID: @fat+XsJaq72

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