> I have a 401(k) Question?

I have a 401(k) Question?

Posted at: 2015-07-28 
If $80K represents your entire retirement savings, then you should probably roll it over to a traditional IRA (not a ROTH).

If you have other pre-tax retirement accounts (traditional IRA or traditional 401K), AND you currently do not have a ROTH, AND you are in good health, then you might consider rolling to a ROTH. The ROTH would serve you better in your 70s and 80s. Alternatively, you could begin funding a ROTH IRA during that first year of new employment when you are "locked out" of your 401K.

Like most questions about personal finance, the answer will depend on other factors which you have not discussed. Do you expect to receive Social Security? Married? Working spouse? Minor children? Debt? Other savings? It all matters if you are aiming to take your BEST course of action.

Based on what you HAVE said - - I'm going to guess that you have a relatively low wage, and you plan to be working for a while longer. If that's true, then I would recommend (in contrast to most other recommendations so far posted) that you begin to fund a ROTH - either with new money or as part of a conversion rollover.

Roll it into a "trad" IRA. There is NO advantage in rolling it into a new 401(k) plan and NO advantage in leaving it in the old one. You cannot roll it directly into a Roth without incurring a huge tax bite.

You're right, I thought I did, wrong fingers! Mahalo

roll it into an IRA, remember if you go to a Roth ira, you owe tax

Good for you

Post to the right category.....