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From: tpl@hou2b.UUCP (T.LEE)
Newsgroups: net.invest,net.taxes
Subject: Re: Rollover of 401-K plans.
Message-ID: <714@hou2b.UUCP>
Date: Wed, 26-Feb-86 17:55:35 EST
Article-I.D.: hou2b.714
Posted: Wed Feb 26 17:55:35 1986
Date-Received: Fri, 28-Feb-86 08:32:51 EST
References: <308@hropus.UUCP>
Organization: AT&T Bell Labs, Holmdel NJ
Lines: 29
Xref: watmath net.invest:1138 net.taxes:1019

As I recall,
	1). termination of employment is "one" of the ways 401K money
can get back to you. (no hardship stuff :-) )
	2). you can use it without IRA-like 10% penalty, but you have
to pay tax on them (your contribution and accrued gain/interest) since
you didn't pay any.  10-year forward averaging applies.  Never did this
before myself.  One of those free IRS publications should have this info.
	3). This is a good chance to roll it over to an IRA-like
investment if you don't need the money or don't like to pay tax.  There
is no limit on how much you can roll over.
	4). Most 401K plans offered do have a paragraph or two indicating
whether they will accept roll-overs from other 401K plans.  For example,
Bell Core's plan does.  But, my wife was not eligible when she joined BCR
from another company which she has a couple of thousand dollars on 401K.
She didn't bother asking whether she can rollover before she (after a
year) becomes eligible for the BCR's plan.  A small probability there.
This is also a funny kind of constraints.

	Anyway, we like the freedom to invest old 401K in a more general framework.
It is pain to be limited in a combinatorial way, 1,2,3,4 funds, pick one, two, or
three and invest equally.  The equity funds are not rated yearly.  Who
knows how they manage that and what incentives they have to do a good job?
Besides, there is a directed graph showing how to move from
one node to the other.  Too much hassle...
	
Her old 401K is in Fidelity's High Income Fund earning dividend slowly :-).
	T. Paul Lee
	hou2b!tpl
	ATT BL