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Asked 6/19/2010

Is there a time constraint for combining multiple 401K accounts?

Presently I have have found that after my company completed a meerge type operation, a new 401K securities company was employed. With the initiation of this new company I have to start a new 401K account (which appears to be okay), however I still have a large finiacial accumulation from the previous account/agency of which i'm told I can not rollover until some later time (I forget how much time is involved). Also, I noticed that with this new securtities agency, I have an old existing account with a current minimal finincial value from years (and I do mean years) ago. With all this in mind, my real question is 'How do I get all three accounts (401K) into one account\agency?'

 
 
 
 
 
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Answer 1/2 - Submitted 6/19/2010

Just talk to your financial planner they should be able to explain what you need to do. Usually there are no time constraint if so the company is why as in your situation. The 401 K rollover is ideal because it will allow you to transfer all 3 of your existing retirement account into a new retirement account without being subject to unnecessary taxes or withdrawal penalties, this is the ideal plan for you it would seem like.

 
 

Answer 2/2 - Submitted 6/19/2010

Find out from the new agency what the permissible actions are with the new 401(k) Plan. Do they accept Rollovers from other 401(k) accounts? If so, get cracking on setting those "Trustee-to-Trustee" Transfers from the old to the new.

Otherwise, in general, there are no set-in-stone time constraints for combining multiple 401(k) accounts. Theoretically you can have several 401(k) accounts from numerous agencies/past employers well into your Retirement. Granted, it is considered easier to watch over your accounts if they are all in 1 account.

Check each of your Plans' SPD (Summary Plan Description) documents to get a better idea of what is and is not allowed with each Plan. And, yes, each 401(k) can be quite a bit different in some of the finer areas (like taking money out in special situations, for example).
If you need help, search for a Financial Planner with special emphasis in Retirement Plans.

 
 
 
 
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