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Author: LostSoul99 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75868  
Subject: ROLLOVER HELP!! Date: 3/7/2001 11:29 AM
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I left my old job and just became self employed. I had about 5k in a 401k, that I just rolled over to a rollover IRA with TDWaterhouse. What do I do now? Can I keep it in the rollover IRA and make contributions there, should I roll it over to a SEP IRA, Roth IRA? Any suggestions?
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28320 of 75868
Subject: Re: ROLLOVER HELP!! Date: 3/7/2001 9:09 PM
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At the moment, your Roll Over IRA may be invested as it is, transferred to a future employers 401K plan, or converted to a Roth IRA.

Roth IRA conversion is probably the best choice. It will cost you current income taxes on the amount converted, but thereafter no further taxes are due at retirement.

Roth is best if you invest for growth and expect you money to grow substantially over the years. But otherwise it depends on the quality of you future employers 401K plan and the investment they might offer.

By the way, those future contributions should be to the Roth IRA too if you fall under the income limits. If over those limits, then conventional IRA becomes attractive.

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Author: LostSoul99 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28346 of 75868
Subject: Re: ROLLOVER HELP!! Date: 3/9/2001 4:53 PM
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Thank you for the info.

One more question if you don't mind:

I will probably be self employed for the rest of my working years. Would a SEP be in my best interest?

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