Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
[[I am in the process making my first job change.]]

Congrats!!

[[ I have worked for my current employer for 16
years and have a 401k with them. My question concerns moving the 401k(5 types of investments
within 401). Can I or should I leave it with my current company until I can roll it to a new
employers 401k?]]

You've got another choice: You can move them into a rollover IRA, keeping them completely separate from any other IRA funds. Then, in the future, since you have kept them separate, you'll be able to place these funds back into your new employer 401k plan.

But, I've gotta tell you that most people who take their 401k funds out never put them back into the "system". After managing their own investments (and, hopefully, slamming the market), they can't stand the thought of putting the funds back into an employer plan and screwin' around with those crappy mutual funds again. But, the choice is certianly yours.

[[ I've been considering rolling it into a IRA with my online broker, but not sure if I
could borrow against it like I can a 401k.]]

Borrowing against your IRA is certainly something that you CAN'T do. It verbotten. Any loans agains an IRA account is treated as a distribution.

So if your use your 401k accounts to borrow against, then you might have a decision to make. But if you have another source of funds, an IRA rollover might be fine for you.

TMF Taxes
Roy

Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
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.