My company is screwing around with name changes. So the 401K I have is now useless. They are closing it. What can I do with the money? Where can I put it. I have the option to leave it where it is, But I cannot add to it & neither can the company. They might open another account in the future, but not sure. I know nothing of how a 401K works when it comes to this.

Thanks

 

You can always transfer it to an IRA. I'm going through a similar situation but it's due to switching jobs. I have 60 days to make a decision - either roll it over into another retirement account (I have TIAA-CREF) or roll it over into an IRA. There is a third option to withdraw the money, but you lose 20% so screw that. The only bad thing about the IRA is that I would only be getting 3% interest instead of the current 5.5%. The benefit of the IRA is that it is a lot easier to get out your money.

 

Roll it over into an IRA.

 

With IRA's can I choose what I want to invest in? Or is it set at a %? Like a CD.

 

yes you can choose what it goes into. It is just like opening an investment account you just cant take it out without penalties. just opened one at charles schwab. Very easy to manage.

 

Roll it into an IRA at a low cost company (not mine) and then pay the taxes to convert it to a ROTH considering you probably aren't planning on retiring in the next 5 years. This is the best option for you, as previously states, you can buy ALMOST anything in a IRA or a ROTH IRA.
If you're comfortable with the security of a fixed rate you can buy a CD in the IRA or even a High Yield bond, in fact you can even buy real gold in an IRA.
Also you will be able to withdraw from an IRA without penalty for a few good reasons:
1: disabilty
2:death
3: higher education expenses (for you immediate family)
4:up to $10K for 1st time home purchase
5: or equal payments until age 59 1/2 (72t withdrawls)

By looking at it this way: this money you put into the IRA works as: Life Insurance, Disability insurance, College Education Saving, Personal Retirement savings, Home Purchase Savings and when in a ROTH for 5 years: EVEN THE GROWTH IS TAXFREE UPON WITHDRAWL!

 

yep, roll it into an IRA