I just inherited a 401k plan with Merrill-Lynch as a beneficiary

how much did u inherit u n00b

>>965069
Around 4500 dollars.

Here are probably heavy withdrawl penalties.

For 4500, I would just leave it there. You're not going to be able to do anything meaningful with that amount of money in terms of investment, especially after a 40% tax penalty.

>>965069
>>965070
Just in the 401k, btw. Total inheritance was over 12000.

>>965070

just leave it alone, $4500 is nothing to invest with.

If you can keep adding to that 401k, just keep adding to it I guess, then when you have a nice amount $25k, or $50k or something, then you can invest it, since you'll be able to realize actual 'gains' instead of a few dollars on your $4500.

>>965073
>>965075
Yeah actually just looking at the withdrawal penalties (10% plus 20% tax withholding) it would take me an incredible amount of time or luck to recoup losses from that so I guess I might as well leave it there. Thanks /biz/.

>>965078
Do not leave it in the 401(k). Instead roll it over into an IRA that will allow you to continue to add to it in your name in investments you choose.

>>965078
do >>965082, possibly.

He's right, you can't add to that 401(k) - unless you coordinate it with you employer and get the account in your name.

You might as well make it an IRA, however, you may have to pay some taxes on it at that point, I'm not sure.

>Open an IRA with Vanguard or Fidelity.
>Rollover the 401k because you're likely to pay fees on it now that it's no longer with the employer, plus at your age, passive funds would make more sense and also be cheaper

Wealth Management only makes sense if you have wealth. Otherwise it's too expensive.

Actually the more I'm looking into it the more it seems like I might have to withdraw the money anyway.

Beneficiaries aren't subject to withdrawal penalties and I'm not sure I can roll the account over to an IRA. I guess I just need to research the fine print of this plan a little more.

>>965086

You'd only pay taxes on distributions.

>>965074
That's peanuts, in either case, look at the expense ratios of the mutual funds and any exit fees of the mutual funds you are invested in. If the costs are too high (protip, they likely are) and if you don't have to pay an exit fee (usually time-based), liquidate those assets and throw the money in a vanguard target retirement account.

From a tax standpoint, you never want to withdraw from an inherited tax-advantaged account unless you need the money. You're pissing away the tax advantages for no reason.

>>965082
>>965086
>>965088
>>966611
Stop. Giving. Bad. Advice.

You can't add to inherited tax-advantaged accounts under any circumstances -- 401ks, IRA or otherwise. So saying to convert it to an IRA just so you can add more money is both wrong and stupid (and costly).

You also can't roll it over into anything. You can withdraw the funds, but you cannot do a rollover.

What you CAN do is TRANSFER the account to a different custodian, such as one that won't rape you with excess fees. Call Vanguard and tell them you want to do a "trustee-to-trustee transfer of an inherited 401k." NOT a rollover. NOT a withdrawal. Be very clear. They'll understand what's needed, unlike the retards in this thread.

Vanguard will get you the paperwork, and they'll work with ML to complete the transfer. Once its at Vanguard, you can invest it in anything (funds, ETFs, stocks, bonds, etc.).

Also, don't forget to take the RMDs. Depending on the age of your father at death, you may have to take that first RMD before 12/31. You'll incur a penalty if you don't. Vanguard has a free RMD service that will do the calculation for you.

Source: I inherited a small IRA at Merrill Lynch, transferred it to Vanguard, and am very happy.

>letting the jews gamble with your retirement money on the stock market casion

Holy KEK!!! You guys are this retarded???

Just buy gold with that money

Thank me later.