Deposit 401(k) check to new account
I received the check from my previous employers's 401(k). Now I need to deposit it to my Fidelity account. Is this deposit transaction equivalent of buying stocks with cash? Meaning that I'd better deposit it when the market is low?
Can you not deposit the money and choose when to purchase ?
you can deposit as a cash and purchase stocks when you want
Used to chime where once send you are done
Or just hit the ellipsis and edit your reply.
Depositing the check to account wont automatically get you any stock, once money is in your IRA account you will have to decide what plan/stock you want it to be invested.
Oh I thought it's like monthly contributions that buys the stocks automatically.
No. It isn’t.
You’ll have to pay tax now on it rather than keeping it as a pretax asset if you miss the window to move it to a new provider
On the check it writes void after 90 days, so I assume that's the time I have before having to pay for taxes.
No. Per IRS.gov you have 60 days.
Assuming you are doing a transfer of 401k it is called rollover ira. You essentially create a rollover ira account with fidelity and deposit that check into the new rollover ira account. Once the check is deposited you then decide what to buy with that money.
Besides the 60 days you have before you get penalized and taxed, time in the market beats timing the market.
The money goes to a money market fund, something like a saving account, it also pays you little interest. You can use that fund to buy any stock/financial instrument.
Just deposit it yo! This ain’t the stock market. You won’t touch this money until retirement anyways. And the clock is ticking before you’re taxed for the withdrawal. Best not to wait.
I believe you have a limited time window to move it to another qualified account. Like 60 days? Too lazy to look it up.