So a year or so ago I was enrolled for a 401(k) through banana republic. I didn't really care cause I didn't work that much so the 2% they were taking out didn't matter. I've since got a regular full-time job and cut back hours even more at BR so I only work a couple night a month, so even less money goes into it.

My new job has a 401(k) too so I'm wondering what I should do with the other one? Just leave it and see what happens, cash it out, roll it over into something else? The money itself is really insignificant but I'm curious as to what my options are. Can you even have two 401(k)'s?

10/17/2008 11:41:13 AM

yes you can have 2 401k accounts

and as long as you're working at both companies you can keep contributing to both up to the max for 2008 which is $15,500 if you're under 50 something

you can roll 401ks into your existing one if you ever leave BR, or your current job for another with a 401k

your HR dept at work should be able to help you out

i dont think cashing out a 401k is ever really recommended since you'll face insane fees to cash it out before retirement

10/17/2008 1:49:41 PM

is that 15,500 in each or 15,500 combined.

not that I'd actually contribute that much this year, but just curious for future reference.

10/17/2008 2:41:26 PM

$15,500 is the max per year across any and all 401ks combined

it might be going up next year, i'm not sure. there is a schedule out there of the increases

10/17/2008 2:51:00 PM

Quote :

" i dont think cashing out a 401k is ever really recommended since you'll face insane fees to cash it out before retirement"

there is something like an extra 10% penalty (on top of the income tax) for taking it out early. if obama wins, i get to take mine out without penalty. that is great.

10/17/2008 3:19:35 PM

i have mixed feelings on penalty charges for withdrawing from a retirement account early

either way, its never a bad idea to contribute to retirement accounts!

10/17/2008 3:59:20 PM

Especially when there are company matching funds.

10/17/2008 11:57:56 PM

Once you stop contributing to a 401k it is best to roll it over into one you are contributing to.

10/18/2008 4:17:45 PM

yeah you can have two....a coworker got a letter from one of his past employers about his...he forgot all about it and they are sending him the balance...they couldnt tell him over the phone.

10/18/2008 6:42:08 PM