Should I Roll My 401(a) Plan or Leave It?
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It takes ten years to be vested in our pension plan. If you take it before then you only get your contributions. We get No say in the amount or options for our contributions. It does not earn well.
If the funds in your old plan are good and the fees are low leave it there. Dave only recommends rolling it to a traditional ira so his smart vestors make more and dave gets a bigger cut.
The biggest fear is the fear of failure. So what we need to agree upon together, and on a personal level, is to discipline our mindset into realising that there are no failures, there are only results or outcomes. You never fail in life, you always succeed. You succeed in getting results of some sort. The key is what we do with those results.
Jesus, the "a" in 401(a) doesn't mean that it's after-tax as Dave flippantly states.
I don’t think this guy know what his plan offers. I would recommend he reach out to his employers HR team and discuss his options. Things can go very wrong when you follow advice blindly without additional research
Has the money not gained or lost a single penny? Or is he not allowed to take the earnings on the match either?
Wow! I've never heard of a company not let you keep your matching. That sucks.
This is why Dave recommends advisors. I think this guy just doesn't know anything. Vesting requires you to be working for the company. You can't quit and leave your money in company plan and still be vesting.
Cash it out
Keep it there. The return you need to match to pull ahead will lead to unnecessary risk.
If he doesn’t move it he can’t add to it to make it grow faster. I may be wrong with my thinking, if so let me know I’m new to this. And if he does roll it over should it go into a Roth? Thanks, Joshua
This was cringe, and hard to watch.
It’s what all of these garbage venture capitalists companies do to get that catchy “employee owned” slogan for the marketing team. They use ESOP/profit sharing to make the “match” contribution, they do contribute and invest these funds quarterly. Then they categorize you as an “owner” or “chair holder” of the company, all while making it impossible to get any answers on the slush fund.
Also having language buried in the BS fine print stating if you “succeed your ownership in the company” or “voluntarily forfeit your position” you loose everything the company contributed, plus the interest. All while also having arbitrarily added stipulation like needing 40+ years of service or minimum age needed to receive 100% of the funds, and having “fund managers/boards” that can completely deny your “request” to Your funds.
So if you try to leave or get fired and roll your remaining 50% funds to an IRA it was never considered a retirement account by the Government and they ste…..take its 20% and you wind up loosing <75% of your “retirement” investments.
I worked 5 years for a steel company, had $8000 in this trap. They wanted all foreman on salary, I didn’t. I wound up with $1,700 in an IRA when it was all said and done. I was lucky to still be young and get in the Union and now have almost a quarter million in pension, 30 in a 401K, and that original IRA thats almost to the existing amount. It’s hard to see older men that mostly did nothing wrong, showed up and did their work to make the company money, get “ furloughed” and fired so they don’t reach a maturity date. While a bean counter in the office gets a bonus for saving the company money.
Rant over, it’s just astonishing to me what we the people allow to happen in this country and what we let these corporations pay and not pay.
These companies dont care about any of us. Please have your money invested into other places, so you can retire.
30, 601 120, 240. I can do it in my head without any paper.
He's been forgetting a lot of things lately.
Boomer, he said 3 times that he is 30.
More and more companies are doing LOOOONG term vesting requirements regarding the match.
So true. Hanging on to that bag of bones for 20 years is bad karma. A 20 year reminder of the old stinkin' job that gave you a horrible retirement option.
The 401k where the company picks the stock fund for you is probably a target date fund so the returns will be more conservative vs what dave prefers.
I am 99% confident this man does not know much about his 401K plan. He need to research his plan. Many 401k plans are pretty decent, not all of them stink.
This is interesting. I left my job with a 401(a) and my plan was 100% employer contribution and the employees weren’t allowed to contribute; however, I was able to take it with me and roll it into my new plan. He couldn’t vest until age 50. Crazy!
First!