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Question for the Money Doctors

Question submitted on Apr 14, 2014.

Question

How do I roll my 401k from an old company into a IRA? Is that easy to do with Fidelity or one of the other large companies?

Thanks

Answer

The 401(k) from your former employer is generally eligible for a tax-free rollover to your personal Individual Retirement Account (IRA). Once you decide where you would like to set-up your IRA account (you mentioned Fidelity), they will help you complete the paperwork to authorize the direct trustee to trustee transfer of the assets from your 401(k) to the IRA. Alternatively, you may want to work directly with a financial advisor who would also help you transfer the funds along with helping you quantify your risk tolerance, investment objectives and time horizon for the investments.


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