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401(k)s for job hoppers
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September 19, 2000: 12:13 p.m. ET
A retirement strategy for people who are changing jobs frequently
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NEW YORK (CNNfn) - The labor market has been so hot that some people are hopping jobs as often as every year. But every time you get a better offer and a bigger salary, it raises questions about retirement planning. What about your 401(k)?
In response to a reader's question, Mark Groesbeck, a certified financial planner from Houston, and a member of the Financial Planning Association, said you may want to consider a Rollover IRA Account.
Ask the experts a question.
My father had a 401(k) program at his old job, but, in his new job, they wouldn't let him roll it over. So it's been sitting in limbo for the past year. What should he do?
If you change jobs frequently you could have 401(k) plans scattered across the countryside. One option is to always roll your old 401(k) into your new company's 401(k) so that all your retirement assets are held in one place. This keeps your assets more organized and accessible.
However, when you change jobs, what do you do when you cannot roll your old 401(k) into another 401(k)? Most companies will allow you to leave the old 401(k) where it is but of course you will not be able to contribute to it in the future. The current plan investments may not be as diversified as you would like either. What can you do?
Consider rolling your old 401(k) into a Rollover IRA account. Inside of this IRA account you can self-direct how the proceeds are invested.
With the IRA being labeled a "Rollover IRA" this gives you the option to someday roll the proceeds into another qualified plan if your employer allows it. In order to keep the rollover IRA "pure" and eligible for rolling back into a qualified plan do not make annual contributions into it. Set up a separate IRA for future IRA contributions.
Your father's former employer should have the necessary forms to start the rollover process to the brokerage company of your choice. 
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