Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[ I had a 401k plan with my previous employer which has about $10k in it. I have
just become qualified to start participating in the 401k equivalent plan with my
current employer. Now I need to decide among the following courses of action:

1) Roll over 100% of the previous 401k to my current employer's 401k
2) Roll over 100% of the previous 401k to an IRA
3) Leave it with the previous employer]]<<<<

Then Pixie replied (to option #3)

Check with your previous employer 401k administrator. But in my humble opinion, this would be
the WORST of all possible decisions. If you want to keep your 401k alive, you might as well
transfer it to your new employer if nothing else. <<
And I offer this opinion, Why not roll your 401k from your previous employer to a "conduit ira" and don't co-mingle any other money with it thereby leaving the option to roll to the new employer's plan a possibility in the future if you chose to do so. This way offers the most flexibility, IMHO. Even if you like the choices inside the new employers plan chances are you can get the same mutual fund with the ira. Bryan
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.