My company is changing 401(k) providers. I have my small nest egg in a guaranteed interest account with the current provider.

The new provider does not offer a fixed interest account. Furthermore, I will be taking minimum mandatory distributions next year. I had planned on using the money from my 401(k) to subsidize my Social Security income until the end.

What are my options to protect my savings?

  • 4
    Could you do a rollover of the 401(k) into something more self-directed? – JB King Dec 10 '14 at 19:18
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    Are you still employed with this company? – EkoostikMartin Dec 10 '14 at 19:25
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    Note that simply keeping even with inflation may require a bit more than a fixed-interest account will deliver. Most advisors say REDUCE your volatility/risk as you get older but don't tell you to eliminate it completely. – keshlam Dec 10 '14 at 19:27
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    I would be incredibly surprised if no low-risk option were offered. I suspect you could carry the entire balance in a money-market option by allocating "zero" to all other vehicles. – Matthew Dec 10 '14 at 20:17
  • Adding on to what @Matthew said ... could you include the list of available funds in your question (if there's not too many of them). Specifically, are there any US government bond funds? Are there any funds with the word "inflation" in their names? – dg99 Dec 11 '14 at 20:34

Your question implies that you are 70-1/2, and not employed by this company. (Note - if you remain employed, the mandatory distribution is delayed)

The best thing to do is to open an IRA and transfer the 401(k) to it. You then have all the investing choices you can ask for including low risk gov securities, right up to high risk leveraged ETFs (don't buy those, just saying).

Make sure the transfer is direct, so no tax withholding. Make sure you request it goes to a Traditional IRA, not Roth. If you wish to transfer to Roth over time, that's another discussion.

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