Oops.. Almost Made A Mistake

Thanks to Monarchcrest and Steve for jumping all over my plan to roll my old 401(k) into my new 401(k). I originally planned on doing this so that I could draw a loan against it. However, further examination revealed problems with that. Additionally, I discovered I would only be able to borrow 50% of the value, which wouldn't work for me. Luckily, I have not yet submitted my forms for rolling the money into my new 401(k) and I have aborted that plan.

I had totally forgotten about self-directed IRAs. These guys allow you to invest in real estate or just about anything else. There are a bunch of restrictions on who you can invest with and such, so it will take a bit of study on my part before I am comfortable with them. Meanwhile, I have a maximum of 60 days to deposit the funds from my old 401(k) into some other retirement plan and I've used about 1 week of that so far. I am depositing the funds into a Rollover IRA at Schwab. This is just a temporary storage place to park the money to avoid penalties (in case I take longer than 60 days) while I investigate self-directed IRAs a bit more.


Post a Comment