Resigning job and have some questions

[michele1176]

I will be quitting my current job sometime around the beginning of June. I do not have any other job lined up at the moment, and might be unemployed for a short time, which is okay.

I'm wondering about two things. I have a lot of options on my plate but have not come to the definite conclusion of my future plans, however, I know I am going to be grilled for an explanation as to why I'm leaving. I just can't say, "I'm leaving because I hate most of you and I'm physically drained to the point where I come home shaking all the time." Any good suggestions as to what I can tell my boss? Any good fabrications, LOL?

Second, I am not investment-savvy and know nothing about 401Ks, other than that I have one at my current job. I know you roll your savings from job to job, but what happens when you don't have one? Your 401K can be independent of your job, correct? However, when I resign, do I have to sign something to roll over my 401K to my new job? See, I'm worried about this because obviously I don't have another job lined up yet. I know this is a dumb question, but I have no clue about any of this stuff because this is the first job I've ever had that I had a 401K.

[winneythepooh7]

Can't answer the 401 question. I would however try to be as honest as possible with your boss. If he doesn't know what is going on already it could always help the next poor soul they hire, or at least work towards creating a better atmosphere. I've left my current agency and then gone back and I know they have you there do this exit interview thing where you have to fill out a form about what you like and don't like. Be honest if you can.

[uscuba2]

When I quit I told them I didn't like the position ( I was forcefully moved ie no choice ) and that I was going back to school.



As for the 401k, You'll want to roll it over into a rollover IRA. You should be able to keep it with the same investment house OR you can go to a discount broker and they'll help you with the paperwork . BUT do NOT get a check sent directly to you. You'll have to pay taxes on it.

[LakeJay]

As for the 401k, You'll want to roll it over into a rollover IRA. You should be able to keep it with the same investment house OR you can go to a discount broker and they'll help you with the paperwork . BUT do NOT get a check sent directly to you. You'll have to pay taxes on it.

I think you would only pay taxes on it if you cash the check. But if you take that check and re-direct it to the new rollover institution you should be fine.

[analogman]

Your company's may allow you to keep your money in that plan when you leave work. You can then contact them to roll it over to your new employer's plan.

Alternatively you can roll over the money from the current company's plan to a personal account.

Assuming the new employer's 401k plan is decent, I think rolling over to the new job is a good idea. If you ever want to get a loan, you can get a bigger loan because of the bigger balance. Also, company plans invest in institution class shares which have lower fees than ones you can buy at a brokerage house individually.

[lilyflower]

I would say rolling over is the best bet, I personally would do it into another 401(k) unless the new employer had a really sucky plan. If that's the case or you're unemployed for a while, you want to roll it over into an IRA then.

As for excuses, hmm. You could say that you want to "pursue other opportunities", that's really not a lie.

[corrie3000]

When resigning, while it can be helpful to give feedback about why you are leaving, keep it constructive...better not to burn bridges when you could run into these people again, even if you don't expect to. Tell them that you've been assessing your long-term goals and feel that you need to move into a new direction. Be honest as you can without sacrificing the relationships.

For the 401K, many companies will let you keep it there short-term but may charge you a fee. Your best options are to roll it over into whatever new 401K plan you will have, if you find a job in the next month or two, or to create a IRA for it. You'll likely work directly with the financial services firm to do that.

[uscuba2]

I think you would only pay taxes on it if you cash the check. But if you take that check and re-direct it to the new rollover institution you should be fine.
No, I just did all of this. It's if you directly get a check from the brokerage, the disbursement will be taxed. If you directly rollover your 401k into a IRA you will NOT be taxed. So say if your 401k is w/ T rowe price but you you like a IRA that Fidelity has, T rowe will send the check to fidelity for your account then it's not taxed. If T rowe sends you a check and then you open an account w/ fidelity, taxes were taken out b/c you got the check.

[LakeJay]

No, I just did all of this. It's if you directly get a check from the brokerage, the disbursement will be taxed. If you directly rollover your 401k into a IRA you will NOT be taxed. So say if your 401k is w/ T rowe price but you you like a IRA that Fidelity has, T rowe will send the check to fidelity for your account then it's not taxed. If T rowe sends you a check and then you open an account w/ fidelity, taxes were taken out b/c you got the check.

Was the check made out to you in your name? I just had this done myself, where I took my pension and 401K money from a previous employer and moved it to another rollover institution (annuity). The check was sent to me (at home) but the check was written out to the new institution. As far as I know I shouldn't be taxed and if I am, I will be pretty pissed at my advisor.

[uscuba2]

Was the check made out to you in your name? I just had this done myself, where I took my pension and 401K money from a previous employer and moved it to another rollover institution (annuity). The check was sent to me (at home) but the check was written out to the new institution. As far as I know I shouldn't be taxed and if I am, I will be pretty pissed at my advisor.


No, it was a EFT from one to the other. My paperwork had options as to who and how it was sent. Since it was made out to the new institution, you were not taxed. IF it was made out to you, you would have be taxed.

[sfwb]

You actually do get a check in the mail, but it is made out to the roll-over account. Call UBS or some other company and have them take care of the details...BUT DO NOT CASH OUT.

I'm quitting soon also. Hard to give suggestions when a lot of the issues are ingrained into the the company's culture. Also, if it's a big company, a lot might have been out of the supervisors abilities so there is no point. I think I'm going to try writing down everything before I go in.