(Previously asked in wrong forum)I just left my old job of 3 years after investing around $7000 in the 401K plan (20th Century Ultra didn't do as well as I'd hoped). I've now got a new job, and I had several options for where to put this money.I'd decided (with help) to transfer it to an IRA, then from an IRA to a Roth Conversion account. Since I'm 25, this sounds like a fantastic way to embiggen my wallet when I retire by paying taxes now in my current tax bracket, but not paying taxes on my earnings in the Roth.My problem is that I really can't afford the tax hit right now of the conversion from IRA to Roth. I can't use part of the 401k for taxes because that would be an unauthorized withdrawl.So my question is should I leave my 401k money in the old company's 401k plan (limited flexibility with mutual funds) until I can take the tax hit, or should I see about putting it in an IRA now (more flexibility with mutual funds, any caveats?) and converting it to a Roth later this year or next?I'm tempted to put it in an IRA now, but I'm not sure what problems I might run into....Any advice for an investment newbie?g
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra