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I just started a new job and I don't know if I should roll my old 401K over directly into my new employer's 401K or if I should put it in a IRA. I need some Foolish advice.

Some information:
I'm currently 27.
20% of my 401K investment was in my old company's stock (which is now down in price).

I currently have a non-retirement Foolish Four investment and I'm very satisfied w/ it's performance. Should I roll my 401K into an IRA and use this strategy? What about my old companies stock?
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IMHO, get YOUR money where YOU have control of it. I'd roll it into a self directed IRA at your discounter of choice, that way you can put your $ just about anywhere you want and when you want to.

401's are typically very limited in what they offer and how/where/when you can move it.

I personally look forward to the day I get my hands on all of that money I have handed my 401k & a over the last 13+ years.(locked in a Bankers disTrust Dinosaur)

Good luck, have fun!
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I just started a new job and I don't know if I should roll my old 401K over directly into my new
employer's 401K or if I should put it in a IRA. I need some Foolish advice.


I think there are two considerations. First if you roll to the 401k and that plan lets you make loans you have a potential advantage. However, if you roll to an IRA you can convert to a Roth which at your age is probably the way to go. Based on the info you gave I would go to an IRA to start.
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Greetings, MFSchoeph, and welcome. You asked:

I just started a new job and I don't know if I should roll my old 401K over directly into my new employer's 401K or if I should put it in a IRA. I need some Foolish advice.

Some information:
I'm currently 27.
20% of my 401K investment was in my old company's stock (which is now down in price).

I currently have a non-retirement Foolish Four investment and I'm very satisfied w/ it's performance. Should I roll my 401K into an IRA and use this strategy? What about my old companies stock?


To Fools, the chance to transfer a 401k to a self-directed IRA is one we normally take. If history is any guide (and there's no guarantee it is), then we believe using something like a Foolish Four strategy in our IRA will produce far better results than transferring the same sum to a new employer's 401k plan. Your company shares will be transferred intact to the IRA, but fractional shares will be transferred as cash. Alternatively, you may have the shares issued to you and pay tax (and the 10% early withdrawal penalty) on the previously untaxed basis. The advantage to that is all appreciation in those shares will be taxed at capital gains rates regardless of when sold. Appreciation from the date of transfer will be taxed based on the holding period since the transfer.

Regards….Pixy
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