Pritcharddane LSU Fan El Dorado Ar Member since Aug 2009 121 posts
401k advice!!! (Posted on 11/12/12 at 4:29 pm)
I'm changing jobs and have a little over 10k in my current 401k. I've heard of rolling it over into an IRA but would like some thoughts and advice on what I should do? I'm kinda wanting to look into investing also. TIA!!!
re: 401k advice!!! (Posted on 11/12/12 at 8:04 pm to Pritcharddane)
I recommend to all new clients that they should roll over the funds to an IRA. This option will allow you to go any to any individual equity, bond, mutual fund as well as alternatives that more than likely will not be offered in the new companies 401k.
re: 401k advice!!! (Posted on 11/12/12 at 9:31 pm to Pritcharddane)
That's a difficult question without knowing your entire financial profile. It is probably not a roth 401k, so the simplest would be going to a traditional IRA. You can convert to a roth IRA, but that will trigger a current taxable event but provide tax advantages down the road. Hope this helps.
tirebiter LSU Fan ATL Member since Oct 2006 5155 posts Online
re: 401k advice!!! (Posted on 11/13/12 at 6:25 pm to Pritcharddane)
Just an FYI, if you are in a good 401k and leave the funds in it you currently would have the option to start withdrawing funds at age 55 versus 59.5 in an IRA without incurring the 10% penalty, or have to take the 72 (t) option. If you are planning early retirement that may make a difference to you. Contrary to popular belief some 401k's actually have low cost, diverse investment options and brokerage capabilities. It's worth obtaining your 401k plan info to make an informed decision.