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1 year, 9 months ago via ask.inc.com

Should I convert my old 401(k) into a Roth IRA?

I've got an ages-old 401(k) from a previous job that I've done nothing with for quite some time. It's not a huge amount, but it is substantial enough that I'm wondering if rolling it into a Roth is a good idea? Would a traditional IRA be a better choice? Help, I'm confused!
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Juniper Kramer | 1 year, 9 months ago
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Like all great questions, it depends. Do you plan to save the money for a great deal of time? Do you expect to use the money anytime soon? If you are young, and the answers to those questions are for the long haul, then you would probably be better off with a Roth.

As far as how you should go about transferring it, I'd do a Trustee-to-trustee transfer over a rollover. This keeps the account open. A rollover will close the account. However, you will still be responsible for paying taxes. So keep that in mind if you might need some of that money to cover the taxes. I'd talk this over with a financial advisor or someone at a financial institution you plan to use in further details. The sources explain all of this in more details.
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mrcal | 1 year, 9 months ago
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The main difference between a 401(k) and a rollover Roth would be when you pay the taxes and what you pay them on. With a 401(k) taxes are deferred, but you will be taxed on all of the money your withdraw (both initial investment and investment earnings) at that time you take it out. If you converted to a Roth IRA, you would pay taxes now on the 401(k) values, but by paying taxes now, you would not be required to pay taxes later (on either the initial amount or future investment earnings).

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au alloy | 1 year, 8 months ago
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Consolidate it all in an IRA with a full service, discount broker.This short youtube shows you how to manage your investments once they are in your IRA. You can slow this down with pause.
http://www.youtube.com/watch?v=zdUaxdZefq4

Source: http://emergings-sumflow.blogspot.com/

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au alloy | 1 year, 8 months ago Report
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Hoot Owls | 1 year, 8 months ago
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Go for an IRA ..

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