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URL:  http://boards.fool.com/ltlt-i-have-recently-changed-employers-and-12874714.aspx

Subject:  Re: loose ends -401k and changing employers Date:  7/9/2000  9:40 PM
Author:  TMFExRO Number:  23222 of 75340

<< I have recently changed employers and have a decision to make on my 401k plan. My new employer has none and my former employer has sent me a distributions packet that indicates I can rollover the amount to a new 401, seek distribution with penalties, or leave the money till retirement with no additional contributions allowed. I,m wondering what a fool would do? >>

You have one other option. You can roll the 401(k) into an IRA. If you leave it in a separate account, called a "conduit" IRA, you may be able to roll it into a future employer's 401(k).

<< I also have a small IRA that I apparently can't contribute to either according to the IRS rule book because my income is above the 40 odd thou required. >>

You've misinterpreted something. Anyone with $2,000 in earned income can contribute $2,000 to some sort of IRA. AGI limits apply only to Roth IRA transactions and the deductibility of traditional IRA contributions when one is covered by a retirement plan.

You can read more about IRAs in All About IRAs, accessible through the QuickFind dropdown menu at the upper right.

TMF ExRO
Phil Marti
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