question about 401k

[laugh]

I left my company, but I still can access my 401k account. To my understanding, 401k is for active employee only, right? I thought it should be rolled over to IRA?

but i am very glad to keep that 401k account though because of the performance of the funds.

I just don't know if this is correct that 401k account ties to employment status.

 

[FoBoT]

i think it is up to the company
but you won't be able to make new contributions

you can get into the same funds if you roll it to a self directed IRA

 

[DaveSimmons]

You can roll over to scottrade, ameritrade, schwab, Vanguard, etc.

If the funds you like are in one family, e.g. Vanguard, it can be cheaper to rollover directly to that mutual fund company instead of a brokerage. You still transfer cash instead of shares, but Vanguard lets you buy Vanguard funds without any purchase fees.

It's usually best to do a rollover, since your ex-employer can start charging you fees. Get the check made out to the brokerage or fund company not to yourself, or the IRS will consider it cashing out and you'll pay penalties.

 

[Midlander]

Make sure you talk to the people where you will transfer your funds. You have to do this the right way or you have to pay the taxes and (possibly) penalties, as DaveSimmons said. This is critical.