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Just need a confirmation on my 401(k) thinking.....

Have (2) old 401(k) accounts from previous employers.

Have 401(k) at new job, but can't contribute till Jan. :(

Are these my options?:

1) close out old 401(k) plans & deposit into NEW 401. (before Jan)

2) Keep current 401 plans, and just contribute to new after Jan

3) Move old 401 funds into Rollover IRA? I have a Roth, but don't think i'm allowed to go directly from 401(k) to Roth without getting involved in a Rollover account.

4) Take distribution, pay taxes on it, and do something silly with it. (No, not seriously considering this option at all)


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Yes, thats a pretty good summary.

You may be able to transfer the old accounts to your new 401K plan at any time. There is no hurry. But I would consider that only if the new employers 401K plan is a good one with excellent investment choices and low fees.

If you meet income requirements, you can do a Roth conversion on your Rollover IRA. This is a good idea if the incomes taxes you have to pay are not massive. Of course if your 401K balances are hundreds of thousands, you may want to think twice. Its still a good idea to convert, but the income tax bill could be prohibitive and the rates could be lower later.

For most modest sized accounts, IRA Rollover and Roth conversion is the best choice. You get many investment choices, freedom to move the account at almost any time, and no further taxes are due in retirement.
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