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My Easy 401k to SEP IRA Rollover – Stop Procrastinating!

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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!
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3 thoughts on “My Easy 401k to SEP IRA Rollover – Stop Procrastinating!

  1. Setting up my sep ira is on my to do list. I don’t know why it seems so hard. I guess because I don’t know all of the rules for taxes. Do I need to take out my expenses from the max income I can contribute? What if I have more expenses toward the end of the year? Do I just hold the income and then make a contribution towards the end of December after I figure out expenses? On my list to research this week. Ugh. But thank you! 🙂




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  2. I worked for the state a decade or so back. I had money in the state retirement system. Last year they sent me a notice that if I did not go back to work at a participating agency my money wold be parked in a lost money account. So I filled out the paperwork and presto, check arrived. At the time I thought I might try going back to work and their fund was doing well. Since it was “lost” money I put it in a Nasdaq stock which has already doubled in two years. I never just pull the trigger on my retirement stocks. Usually they have to pay a dividend and I have to be able to buy it within 20% of its lowest 12 month price. I usually buy over the year so that if I bought high I might be able to get some at a lower price for cost averaging. Also, I look at their activity year by year for last 9-10 years if possible. Some types of stocks have seasonal dips or dip after a dividend is paid. So I still have some money in all of my investment retirement accounts and sometimes catch things dropping even now. I liquidated one account at one brokerage to transfer into a new one, was able to buy same stocks at less money over last 3 months by using limit order, GTC, and lowest amount I though it might reach. Nothing to lose. At my age, I am suppose to be buying CD’s and bonds. So I looked and could not find much. I did finally buy several bonds that pay 4% annually, but I am addicted to dividend stocks I guess (half of mine pay almost 4% or more annually). Each their own. I did lose money earning opportunities by allowing money to sit for a while because I thought the market would surely fall, that’s when I decided to form some rules and just start investing again. I looked at my Vanguard funds, they had not doubled in 10 years, so I liquidated them and transferred them over to the roll over account. I am actively working on consolidation and organizing everything in my life. It is slow going, I am easily distracted, but I too have suffered losses. The people left behind will appreciate it if things are consolidated or at least organized. I will try.




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