401k contributions to old job where still employed

I have recently started a new full-time job, but am still listed as a "part-time on-call" employee with my old company. As such, the benefits dept. at the old company says that I am unable to roll-over or transfer my 401k to my new company's 401k or into an IRA since I am still listed as "employed" with them. This arrangement is a favor to my previous employer and I will probably be doing very little part-time work for them.

I would still like to contribute money to my existing 401k, since I already have a significant amount in there. Is it possible to make extra contributions to this 401k plan, other than a payroll deduction? If this is possible, is it okay ethically (since my old employer matches contributions up to a certain amount and I am not really "working" for them anymore)? Or is there any way to transfer the old account to an IRA or my new employer (or is my old benefits dept. correct)?

Reply to
brgomeistr
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Greetings:

Do you really want to work for your old company in the future? If you are not going to be doing any work for them and or you do not expect to be doing any work then I would terminate all ties to your old company (financially) if you have a substantial amount in your 401k. By rolling your monies over to an IRA you gain full control of the monies for investment. One thing to watch for though is the time factors for vesting if there is a match from your former employer. If the company is good an solid and you have amounts that are not vested you may want to wait so that you do not loose any matching funds.

Regards, Anton Johnson

Reply to
<a2004

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