No. of Recommendations: 0

As a tech worker in the 90's I find myself changing jobs frequently and constantly having to rollover funds. I Currently have a lump sum in one account and a small piece in another account.

I am again on my way to a new job and soon the time will come when I have to decide if I will enroll in the new 401k, how much will I donate will I partake in stock options, etc, etc...

Currently my lump sum from a previous employer is sitting in a dormant account. That is, I can keep the money there, move the $$ from one fund to another but can't contribute any more to this fund. All monies that were put in have been put in pre tax and I would like keep it that way to avoid taxes and penalties ;o)

I don't want to roll it into a new company offered fund since I feel that within a couple of years I will be in this same position. I will however, enroll in the plan to take advantage of the employers contributions.

And now for the big what if. If I were to take all previous 401k plans and start an IRA (say through etrade), would I be liable for taxes and penalties? Am I only allowed to contribute 2k anually? Can I borrow from that account for a home loan.

The home loan is probably the highest priority right now. I would like to create a new ira that I have control over, put as much into it anually (say 10% of salary), take advantage of company contributions by enrolling into their 401k fund, and most importantly be able to borrow from my new ira that (the one I set up)to pay for a down payment on a home.

Any comments are graciously accepted.


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