I left my job two months ago due to some personal things I need to sort out before getting back into work. Within the year I worked there I made $1,293 in my 401K which has an employee match with investments. To be quite honest, I'm not quite educated about 401K's other than knowing what the purpose of them is.
I have 45 days to try to figure out what to do with this money and I'm not quite sure what I should do. On the letter I received it says I have three options - direct rollover to a new employer (I don't have one currently), direct rollover to an IRA account or lump sum cash distribution. It also says as I quote from the letter, "If you do not take action within 45 days of this communication, your vested account assets (minus any outstanding loan balance) will be automatically rolled into an Individual Retirement Account at Millennium Trust, unless your account value is less than the final distribution fee. Your account assets will be held in an DFIC insured interest bearing money market deposit account. You will have the right to contact Millennium Trust at any time to complete the required paperwork in order to redirect the investment of your account or to request a rollover or distribution out of the Millennium Trust IRA. Any Roth assets are included in this automatic rollover will be held in a separate Roth IRA at Millennium as required by law."
I need help figuring out what my best options are and what to do to avoid any tax payments.
Submitted December 07, 2021 at 08:14AM by what-doth-life https://ift.tt/3y6dqjQ
