UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: culcha Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75700  
Subject: Re: rolling over 401K Date: 11/27/2013 12:02 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I am 58 and have have 10k in a 401k. It is not making any money and looses sometimes. I was thinking of rolling half into the motley fool 401k and half into a gold 401k. I am new to investing and would like some advice on how to roll this over and is this the best choice for me. Also what is a good gold 401k? Also what is the difference in a roth401k and is this a better choice?

I don't know what a Motley Fool 401(k) is -- and, personally, I'm really not into gold (and anyway, it seems to have risen lately, so I expect a decline is coming).

If you're still employed by the company in which you established your 401(k), you should check with the people there (probably HR) about the rules of their set-up, as different companies may have different rules.

As for the Roth 401(k), this would require you to include the 10k as income -- and pay income tax on it. With any kind of a Roth, you won't have to pay income tax on qualified distributions (whereas in a regular 401(k), you do.) So with regard to tax it's pretty close to a draw. But what's important is whether you expect to be in a higher tax bracket later (when you retire, say, and take those qualified distributions). If sos, the Roth version is better. But if your tax bracket right now is higher than what you anticipate in retirement, then is better NOT to go with the Roth, as you will be incurring more tax.

In any case, it's important to know what you are doing before you make any moves like this, so you should check with HR and see what they allow, and check with the law, to see that is legally allowed (and what the tax repercussions will be). Then you can make an informed decision as to your options.

culcha
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Back to the Future Buffalo Wild Wings
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement