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Personal Finances / A Fool's view of IRA&401K taxes


Subject:  Re: What to do with Rollover IRA? Date:  1/22/2010  4:25 PM
Author:  legalwordwarrior Number:  181 of 201

well it looks like you have left it in cash so you are not going to get a good return, especially with a $10 fee. You can see what options WF has to invest in. With that small amount you could put it in a total stock market index fund or S&P 500 index fund.

Yes, it was quite a let down to have to give up all my overseas funds that I was contributing into while at my previous employer, but WF didn't allow any of them in their IRA accounts. To give you an idea of the type of income this little account was making: I put $50 per pay period into the account starting 6 months after I began working there. There was no matching, and the fund was up to around $2,000 when I left 18mths later. I would have been happy to leave it there if I could have.

Probably the better thing to do would be to ask your employer if they will accept a rollover from an IRA to your current 401K. Not all providers will. You may have to show that you did not make any extra after tax contributions.

Unfortunately, this is not an option. I don't have a 401(k) with this job. We put contributions into TRS (Teacher Retirement System). This system allows employer matching, but does not allow the employee to add extra funds into the account.

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