Roth vs. tax deferred imho comes down to a simple question. What tax rate are you in now and what tax rate will you be in retirement? Of course, you don't know the answer to the second part of that question, but you should guess based upon your circumstances. If you are in the 25/28% tax bracket now and think you will be in the 15% tax bracket in retirement then you should definitely keep it in a tax deferred account. You also need to know that if you convert you need to come up with the cash to pay the taxes. If the amount in the 401(k) is large this can be pretty significant amount. For example, if you have $100,000 and you convert it to Roth, you are probably going to need to come up with $28,000 or more to pay the taxes. Whether you leave it at Vanguard or roll it over to ScottTrade is up to you. I like Vanguard a lot, but it comes down to expenses and what you are going to do with the money. To trade Vanguard at ScottTrade may cost you a transaction fee, but I don't know.
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