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Subject:  Roll 401k to IRA or to another 401k Date:  12/29/1998  8:58 PM
Author:  talam Number:  7745 of 127753

(I am 25, so retirement is far far away, but at the same time, small decisions now can have major impact later :-)

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

Here are the plusses and minuses as I see it. I'd be grateful if you could point out anything I have wrong or anything I have missed:

(1) Roll-over to 401k is better because:
I can borrow against it for my first home.
I can borrow against it for personal emergencies.
(2) Roll-over to IRA is better because:
I have control over how the money is invested.
? - I assume this will be a Traditional IRA that I convert into?
(3) Don't even know if this is possible.

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