Ameritrade 401k Rollover
What is the best way to rollover my 401K?
I left my old job, and want to rollover my 401K to another institute so that I can have more investment options, such as trading stocks, or ETFs, instead of mutual funds only in my 401K. and, exchanging in and out any time I want, instead of order being excuted after market closed. What is the best way to this and what financial institute would be the best place (etrade, DT Ameritrade, T.R.Price, etc., etc) to rollover to?
Do a web search for discount broker and look for comparisons. While stocks and ETF’s can be traded instantly any time the markets are open (or when limit or stop orders are reached), any trades for any mutual funds have to be arranged before the broker’s deadline and you end up with whatever it is at market close. Mutual funds may have minimum holding periods from 30 days to 6 months to avoid penalty.
Whatever you decide, do a direct trustee to trustee transfer to an IRA to avoid withholding. If it is paid out to you (check in your name or cash) there is mandatory 20% withholding that you have to add back in within 60 days with the rollover, or the withholding would be taxed plus 10% penalty if under age 59.5.
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