Thread by @bopinion

💰 How do I transfer money in a 401(k) account under my maiden name? Do I have to withhold anything for tax purposes?

Don't give up in frustration and leave your retirement nest egg behind trib.al/Sunp8fT

The percentage of U.S. workers who have changed or lost jobs in 2020 is double the annual rate during the previous two decades.

And with that turnover comes a trail of orphaned 401(k) retirement accounts trib.al/BzpFHrQ

Generally, it's a paper process to roll over retirement funds.

Until the process becomes digitized, here are things to keep in mind when deciding what to do with that 401(k) money ⬇️ trib.al/BzpFHrQ

It's usually best to move the money as a direct rollover. This means the funds will be headed straight for a new account — not to the account holder.

The former employee then doesn't have to have any taxes withheld trib.al/BzpFHrQ

If you've taken a loan from your 401(k), it's usually due when you leave your employer.

If you can't pay it back when you depart, it will be considered part of your taxable income, and you could face an early withdrawal penalty depending on your age trib.al/BzpFHrQ

For workers who have company stock in their 401(k)s, you may be responsible for calculating the cost basis on that stock.

If you roll over those funds, consider whether it makes more sense to put the funds in a taxable or non-taxable account trib.al/BzpFHrQ

What if the name on the account needs to be changed — say, the employee has gotten married?

Questions about how to handle a name change generally require a call to the old and new 401(k) provider.

Be prepared to enlist the help of a notary trib.al/BzpFHrQ

It's typically wise to roll over money from an old 401(k) into a new retirement account.

There often isn't diversification among the accounts in terms of what they're invested in and the risk level borne by each one trib.al/BzpFHrQ

Some plans require retirement account holders to have at least $1,000 invested, while others require $5,000 to maintain plans once workers move on.

You may have no choice but to roll it over anyway trib.al/BzpFHrQ