The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Roll 401k to IRA or to another 401k||Date: 12/29/1998 8:58 PM|
|Author: talam||Number: 7745 of 119650|
(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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