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I am getting ready to start a new job. I cannot make any contributions to the 401k until after 1 year. In the meantime, I have my 401k with my present employer. What is the best thing to roll this money into? I do not have a family, so I can pretty much do what I want with it....any ideas on how to earn the most interest, etc.

Thanks!
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Your choices are leave it where it is (if it is bigger than their minimum), move it to an IRA, convert it to a Roth IRA, or move it to your new company's 401K when you are elegible.

How have your returns been in the 401K compared to the S&P? If better than the S&P, leaving it where it is may be most cost effective. But not if the firm is a small one that may be acquired or disappear, or if costs like loads and fees are high, or investment choices, rules, or service are poor.

Similarly, consider moving to the new employers 401K if the same considerations apply.

Roth IRA is usually the best long term investment since funds are not taxed at retirement. All the other plans merely defer income taxes until retirement. The price is that you must pay income taxes on the amount converted.

IRA is the last choice. Either conventional IRA or Roth IRA give great flexibility to choose investments. You can set one up at a mutual fund house if you want to invest in funds or a discount brokerage if you want a combination of stocks and mutual funds.

Since costs of 401K plans are often subsidized by the employer, IRA is often somewhat more costly. Check out this aspect, but often the differences involved are small especially if your account is sizeable.

The way to proceed is decide where you want to move the money. Contact that firm, and ask them to arrange the transfer. They usually have standard forms and procedures and will advise if there are any unforseen problems with your plan.

Best of luck to you.
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Thanks pauleckler!!! I'm not sure if my employer lets you leave the money in their 401k....I'm new at this investment stuff, so I really appreciate your information.

Cynder123
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