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This answer is from How do I rollover my 401k after losing my job?

Kristen J. Gough
FiLife Contributor
4 months ago

I agree with Howard. I can be tempting to cash out that 401K, especially when you don't know if/when the next job will be coming. Sounds like you're already taking the right steps by rolling over your 401K. And yes, your new IRA custodian should be able to do the bulk of the paperwork for you. In fact, ask your new IRA custodian if s/he can make a call-in arrangement with your old fund administrator. In other words, you call new custodian and then s/he dials in your old administrator on the line. The three-way call will keep you from going back and forth between the two to confirm details. Call your new fund administrator in advance to make sure this is a possibility.

Final thought--as you are looking to transfer funds make sure you chose an IRA with a low administrative cost, which in turn will boost what you'll make on your investment in the end. To understand how those costs affect your 401K, if you were to leave it where it is, see http://www.filife.com/stories/how-much-does-your-401k-cost-you.

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