Partner Announcement: What To Do With Your 401K

Create your master 401k account with Rollover ExpressLast year I wrote an article about having a “master 401k account.” Its based on the idea that you’ll change jobs (employers) nine times before you retire, and I thought it was quite ingenious 🙂 So here’s the basic idea:

You get a job and begin to invest in the 401k program. The company matches a certain amount and if you are lucky there is no vesting period (which means that you “own” the amount the employer contribute from day one). Two years later you change to a new employer… what happens with your 401k?

Your new employer will likely encourage you to roll your last 401k over, and keep it all in one place. They’ll probably have different policies, perhaps there is a two year vesting period. The policies and fees will most likely be different than the one before, and if you care then you’ll get to read through a bunch of legal documents to see how your retirement money will be handled.

For the average worker, repeat this seven more times. Sound fun? Not to me.

So my article, which is in the JibberJobber library (just login and click on Library, Articles), talks about having a personal master 401k account. The idea is simple, and its all based on taking ownership of your career (in this case, your retirement).

Find a service provider that you trust that will help you take your 401k account(s) and roll them all into one master account. This is completely independent of any employer account. Each time you change employers you don’t have to worry about rolling the 401k into the new employer’s outsourced service provider — you just roll it into your own master 401k account.

I still strongly recommend taking advantage of a company 401k account, especially where the employer matches the contribution!! Don’t miss out one a 100% return on investment! But managing all of these accounts… blah!

What if you could just fill out a simple form and your 401k will be rolled over into a personal master account? Actually, you can.

I’ve partnered with Rollover Express (an Invested Interests company) and personally went through this process last year. When you go to and fill out the form, you’ll be contacted by a specialist in rollovers… the process is simple, painless and quick. And the customer experience I got was awesome.

I wanted to go through the process and work with them for a while before I promoted them, or partnered with them, but now I feel very confident in recommending their services.

Now I’m no expert in finances, but this seems to be a very smart move in managing your retirement money.

If you have any retirement accounts just laying around (from previous employers), go sign up at RolloverExpress and begin the process to create your master 401k account. Make sure you tell them you came from JibberJobber!

I’ll blog later on some specifics in a process like this, but there is NO COST to you to do this. There are plenty of financial advisors that will charge you to fill out the paperwork and submit it – this is a no-cost transaction for you. And it was a no-brainer for me.

What are you waiting for? Go sign up now – its just a “contact us” form, and they’ll get back with you to get more information.

Be sure to let me know how it goes.

13 thoughts on “Partner Announcement: What To Do With Your 401K”

  1. So when you have a 401k with a current employer, just keep it there. When you change jobs, then roll it over to your master 401k account.

    Next job you get, if they match, then do a 401k with them… and when that job terminates, roll it ove to the master 401k account.

  2. But Jason…. you can roll over your old retirement savings plans (401k or 457 or 403….) to any qualified IRA. Not sure I get the unique value proposition of these guys.. you can do the same with Vanguard or Fidelity.

    thanks – david

  3. Anatha, good question. The form has about 8 fields (name, etc.). Then they contact you directly to see if they can help.

    Its free to fill out the form.

    Its free to use their service to roll over your retirement account.

  4. Jason,

    Thanks for posting this entry about our company.

    In a nutshell, we specialize in rollovers – rollovers of all kinds (401k, IRA, 403b, etc.) – and what happens to your retirement account after the 401k or IRA rollover. We are efficient, easy to work with, and reasonably priced.

    A big concern with investors rolling over their funds is the amount of time the average transfer can take – and sometimes the firm that is being “transferred from” does everything it can to slow the process. The longer this transfer takes, the more time your investments are not earning a return (as a quick calculation, if your account balance was $100,000 and your yearly return is 12%, one month of missed returns could easily pass $1,000). In addition, we estimate on average, rollovers take the average individual 6-10 hours of their time to coordinate.

    There is no minimum for our service. When we transfer your funds, we transfer them to an account – a “master” retirement account – opened in your name with our custodian. There are many advantages to maintaining your retirement account outside of your employer (to the extent you can). In brief, your fees can be much lower and your options are infinitely greater.

    Our compensation is a flat annual fee based on the account balance you maintain with us after the rollover.

    I am always available to talk about your specific rollover/transfer, visit our site for contact information. And again, I would like to thank Jason for featuring us in this post, we hope we can be of service to your members and readers.

    Brandon Small, CPA

  5. What if the new employer that I go to does not allow me to be eligible for their 401k plan for one year? Can I get them to put money into the master 401k account? Or is my only option (to get tax savings) an IRA at that point?

  6. Do,

    Great question. 401k’s are very similar to IRA’s in their intent, but they differ in implementation. 401k plans must be run through an employer. When you are an employee, your ability to participate in their plan is on their terms. However, functionally, an IRA will accomplish the same thing for you – putting money into a tax-deferred account.

    The master 401k account that is being discussed above will actually be labeled a ‘Rollover IRA’ or ‘IRA.’ So, we are talking about opening an IRA outside of your employer’s plan, and funding it in situations like your’s.


  7. I still dont get the value proposition of the service. Rollover Express charges a fee to manage the account, then the money will be invested in some underlying investment vehicle that will yet charge you again. Why not eliminate the middle man, and roll your money directly into an IRA with a mutual fund company?

    I still do not get the case for this product.

  8. David,

    You are correct – we are advisors that charge for financial advice, that is how we pay rent. The Rollover services are unique in that most advisors do not specialize in doing this quickly and efficiently.

    For do-it-yourself types, our service is probably not for you. For people that are too busy, are afraid of making a mistake, or would like to utilize our advisory services, we are very helpful.

    I am always asking myself “if I didn’t do this for a living, would I choose my company/service?” I would. We are professional and good at what we do. As advisors, we build efficient portfolios for our clients, provide access to small/unique investment opportunities and provide financial planning services.

    I don’t mind critical comments, as a small business owner I ask myself these questions all the time.


  9. Brandon, I appreciate your response. I provide advisory services as well. I strongly believe in the value we deliver to our customers.

  10. This is turning out to be a great dialogue.

    I used Brandon’s service (found him through a network contact in San Francisco) and have spent time on the phone and e-mail with him. I only recommend him because of what I’ve done with him – I’m sure there are other experts out there that you might be comfortable with (like David Grubman :)).

    Also, for the record, I don’t do my own taxes (or change my own oil) – I’d rather get professionals to do that for me (and have it done right). I found help to get my business incorporated and all that lousy paperwork stuff so I could know it was done right. I could have tried to do the rollover on my own but felt that I needed help so I didn’t screw anything up.

  11. While I like the idea in theory, I don’t see the motivation. Any rollovers I’ve had to do have been super painless. And my last two employers used Fidelity to manage their 401k, so I didn’t have to rollover anything. Plus, their are advantages that come with large 401k plans that you can’t get in your own personal account.

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