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Author: jeffy3 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75523  
Subject: Re: 401K, Traditional or Roth IRA???? Date: 11/12/1999 9:17 AM
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Jim wrote:
Situation: My wife is taking another job in about one week and I am trying to decide what to do with her 401k money??? There is almost $10k in her account, of course, I could just let it roll over into her new company's 401k but they do not have the type of funds that are Foolish. I would prefer to use that money to open a Traditional or Roth IRA with Vanguard to purchase the Vanguard Balanced Index Fund and continue to contribute to that separately. Then, my wife could start her new company's 401k.

>>>IMHO I would roll it into an IRA so that I could have the investment choices that appeal most to me.>>

Jim wrote:I already feel the Vanguad fund mentioned above would be a better place for the money as long as I am able to do this and do not get bashed with taxes.

>>>Vanguard is a wonderful choice for people who want index funds. I'm not sure whether a Vanguard brokerage account will allow you to by and sell individual stocks. If, and when, you desire to get into individaul stocks if they don't allow you to trade stocks you can always transfer the IRA. There are no tax consequences if you roll it into a trditional IRA. If you convert it to a Roth you will get taxed at your income tax rate for all contributions made. You didn't say how old you are or when you plan on tapping the money so it is impossible to say whether you should opt for a Roth. If you have more than a few years until you begin taking distributions IMHO you should go with the Roth.

jeffy3>>
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