No. of Recommendations: 0
Hi,

I have a 401k from a former employer. I want to move that money into a new account. The choices that I think I have are:

1. To rollover it into an IRA:

2. To rollover it into a Roth IRA:

3. To transfer it into a 403b account

One question concerning all the 3 options is: Are the rollover amounts counted in the current years' contribution limit of the account they are rolled into (eg, if I rollover $2000 from old 401k to roth ira, can I contribute an additional $3000 this year, or can I do only $1000)?

My 401k is pre-tax, so between the IRA's the natural choice would be a traditional ira. But I am leaning towards a roth ira because I think I can use the money better when if I purchase my first house ($10k max withdraw). So, if I do a transfer into a roth ira, then will I have to pay taxes now (401k was pre-tax)?

All this stuff is so confusing. These are a lot of questions, the answers will help in clearing a lot of concepts. I would appreciate any help!

007wiseFool007
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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