401k must be moved! I am retired…what should I do?


By admin ~ July 22nd, 2009. Filed under: General.

401k must be moved! I am retired…what should I do?

The company I retired early from went bankrupt. Merrill Lynch is currently holding 401k. I currently have 110,000.00. $25,000. from ML retirement acct. fund went into government fund with 8 mo. distribution to avoid crash. 25,000.00 and additional 12,000 were A Class front loaded stocks. My CPA says roll into a traditional bank IRA–he was unaware of the distribution freeze and front load when I asked him this. I will be needing this money in 6-8 years. Should I roll it all over including 37,000.00 front loaded stocks. or what? Any suggestions would be greatly appreciated! I am very conservative and wishing to incur minimal fees. Thank you!

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3 Responses to 401k must be moved! I am retired…what should I do?

  1. admin
    July 22nd, 2009 at 4:22 pm
    If you are very conservative and don't plan on touching the money for 6-8 years, then you might consider a 7 year fixed or indexed annuity. You would have no chance of loss, reasonable upside potential and/or guaranteed interest on your principal. Certainly more than what a bank cd would pay.
  2. admin
    July 22nd, 2009 at 4:22 pm
    Roll it over as quickly as possible. They can't charge you fees just because they went bankrupt. If you have to leave it where it is, to avoid early termination fees, that is different. Avoid early termination fees, they can really be steep.
  3. admin
    July 22nd, 2009 at 4:22 pm
    Perhaps you can move it WITHIN Merrill from a 401k to a Merrill IRA without incurring any transaction costs. Ask them.

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