Another rollover catch is that you are allowed to roll only your pre-tax contributions. However, because you have already paid income tax on this money, there is no penalty or tax due. Lee notes that it is possible, however, to rollover the interest you earned on your after-tax contributions. That takes some accounting work on the part of your plan sponsor, but is worth the effort. If your job change was prompted by a layoff, you might be able to talk your HR person into hiring a someone like Lee to come in and go over your options.
Help is also available online from the fund companies.
In fact, Fidelity will soon offer an on-line asset allocation tool developed especially for the growing rollover market. Developed by Strategic Advisors, the registered investment advisory arm of the company, the tool is designed for investors dealing with lump sum distributions or rollover assets. This is an option Lee says you should avoid at all costs. You have just 60 days to roll the money over to a tax-deferred account. If you don't, the IRS sees it as early distribution.