I just got a new job (and I'm f*ckin thrilled about it! ) but I still have some money in a 401K at my previous employer. I've heard about doing a "roll-over" and putting it into a Roth or some other vehicle, but I'm not sure if I should, or even need to? does anybody have any opinion on the matter? and if you feel I should xfer the $, any recommendations as to which financial group should manage it?

thanks in advance!

 

your old company will evaluate your account and may tell you that you MUST roll over, other wise you have some time.

its my understanding you can not convert this 401k to a roth ira unless you take the 10% penality. if anyone can verfy this cool.

 

If you have less than $5000 in the old 401k plan, you MUST roll it over. Here's a site that will tell you some of your options.

http://www.smartmoney.com/retirement/401k/...?story=rollover

Congrats on the new job! Does this mean you'll be house hunting again?

 

couldn't he "cash it out" (and pay the penalties and taxes) instead of rolling over (not that I would advise that, but couldn't he?)

You could spend the $ on your woman's big fat diamond ring.

 

He could roll it over to his new employer too...

 

Oh sure, he could do that. You take a big hit in tax and penalties, though. If you roll it over to a self-directed IRA you can always borrow against it and pay yourself back.

 

When I changed companies I rolled mine to Fidelity rather than my current employer. With a company like Fidelity (there are lots of them out there) you can direct you own investments and have an almost unlimited selection. In your current or past employer you are usually set from 9-11 choices.

 

my point was.... diamonddave made it sound like he "HAD" to roll it over.... when i don't think he "has" to....but he does need to get it out of the previous employe's 401k plan.

- can you borrow 100% of the $ in an IRA? i know at my work we can only borrow 50% (which all of the plant guys do on a regular basis).

 

He only has to do something with it if it's less than $5000. Otherwise he could just leave it there, which I've done with a couple of 401ks over the years.

 

i think i was in the sun too much today...... i quoted you (diamond dave), then refered to you (diamond dave) in some odd way....sorry about that.

so.....Tritium....whatcha doing with all that dough????