I worked for the Reynolds and Reynolds company (formerly Universal Computer Systems) from June 2005 through July 2011. In those years, I always contributed the minimum necessary to receive the maximum company match – 6%. I also ended up working there for 6 years, so I was fully vested. But after I left, since I couldn’t simply transfer the 401k balance to our Roth IRA’s, I just shifted it all to the back burners of my mind.
Handling My 401k to SEP IRA Rollover
Fast forward to 2015. My hubby and I finally opened a SEP IRA to fund with as much pre-tax self-employment income as allowed. I knew I could move my stagnant 401k into that SEP IRA but didn’t want to put in the effort to find out exactly what I needed to do. Then 2016 was consumed by life and loss. By the beginning of this year, I realized I couldn’t keep putting life decisions off until everything was rainbows and sunshine since that isn’t how real life works. Adulting…ugh. 😉
I carved out a few hours of a day a few weeks ago and called the company that holds our SEP IRA and asked what I needed to do. They pointed me to the appropriate online instructions in less than 5 minutes and 10 minutes later I was filling out the correct online form at the 401k site.
Then I just crossed my fingers and hoped the physical check from the 401k company would arrive to our SEP IRA account without any issues. About a week later, there it was! Cash patiently waiting for me to invest.
This week, I pulled the trigger since all great minds (my husband, J Money, Uncle James, and about every stock person in the known world) say that timing the market is not nearly as beneficial as investing and just holding through the crashes until you are getting close to needing the money for actual living expenses.
Join Me and Stop Procrastinating on One Task
For anybody else putting off financial errands like this, stop it. It took me 20 minutes, one phone call, one online chat box, and one online form to handle this…I fretted about it on and off 10 times longer. Just like most unknowns, it is way scarier to think about than it is to confront it head on.
Do me a favor. Comment below with a financial errand that you’ve been putting on the back burner -tiny or huge or whatever is on your mind. Then tackle it (or at least the start of it) by the end of this week. Then come back here and update us all. I’m guessing at least a few of you have been wasting unnecessary head space just like me. Let’s mark one thing off our to-do lists!!!
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!