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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Possible stupid 401(K) question
SO I have a 401(k) plan from my old job that has some money in it. I am no longer contributing to that plan as I have a new 401(k) plan at my current job. Does it make more sense to roll the old 401(K) plan into my current one?
TIA
Message edited 10/22/2007 11:38:04 AM.
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Posted 10/22/07 11:36 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Possible stupid 401(K) question
yes, i think it makes sense.
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| Posted 10/22/07 11:51 AM |
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QuoteTheRaven424
22 Months?!!!!
Member since 5/05 13659 total posts
Name:
And If That Isn't A True Blue Miracle
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Re: Possible stupid 401(K) question
absolutely
this way you have all your money in one place and it's easier to track
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| Posted 10/22/07 11:52 AM |
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leighla
Support Cancer Research
Member since 5/05 16353 total posts
Name:
Lauren
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Re: Possible stupid 401(K) question
Posted by QuoteTheRaven424
absolutely
this way you have all your money in one place and it's easier to track
I agree.
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| Posted 10/22/07 11:54 AM |
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LMF123
My Boys.....
Member since 4/07 1526 total posts
Name:
Lisa
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Re: Possible stupid 401(K) question
Yes! :)
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| Posted 10/22/07 11:58 AM |
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BlueDiamonds
mommy to 3 boys
Member since 2/07 3885 total posts
Name:
proud mommy
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Re: Possible stupid 401(K) question
i think it depends how much is in there. if it's less than 1K, i would just cash it out. more than that, roll it over.
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| Posted 10/22/07 12:00 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Possible stupid 401(K) question
Personally and professionally, I would roll it into an IRA. That way, I have control over the investments whereas with an employer 401k, you are stuck with whatever investment choices there are in the 401k which can include loaded funds and/or very expensive funds. You can do a direct rollover into an IRA and it won't cause any tax reporting.
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| Posted 10/22/07 12:11 PM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: Possible stupid 401(K) question
Posted by shamrock124
Personally and professionally, I would roll it into an IRA. That way, I have control over the investments whereas with an employer 401k, you are stuck with whatever investment choices there are in the 401k which can include loaded funds and/or very expensive funds. You can do a direct rollover into an IRA and it won't cause any tax reporting.
IA
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| Posted 10/22/07 12:12 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Possible stupid 401(K) question
Posted by BlueDiamonds
i think it depends how much is in there. if it's less than 1K, i would just cash it out. more than that, roll it over.
It is rarely a good idea to cash out a 401k due to the penelty and taxes due on such. It usually runs close to 40-50% going to taxes.
Message edited 10/22/2007 12:12:53 PM.
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| Posted 10/22/07 12:12 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Possible stupid 401(K) question
x double post.
Message edited 10/22/2007 12:12:38 PM.
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| Posted 10/22/07 12:12 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Possible stupid 401(K) question
Most likely, you cannot roll it into your current 401(k). Check with your plan administrator. The best way is to roll it into an IRA.
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| Posted 10/22/07 12:13 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Possible stupid 401(K) question
Posted by shamrock124
Personally and professionally, I would roll it into an IRA. That way, I have control over the investments whereas with an employer 401k, you are stuck with whatever investment choices there are in the 401k which can include loaded funds and/or very expensive funds. You can do a direct rollover into an IRA and it won't cause any tax reporting.
ITA. In any cases, you want to rollover to a qualifying plan so you can keep contributing to it. Otherwise, it will just sit there. You want to contribute in your "early" years so interests have time to compound.
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| Posted 10/22/07 12:14 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Possible stupid 401(K) question
Posted by QuoteTheRaven424
absolutely
this way you have all your money in one place and it's easier to track
That is what I was thinking....thanks guys 
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| Posted 10/22/07 12:15 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Possible stupid 401(K) question
Posted by Blu-ize
Most likely, you cannot roll it into your current 401(k). Check with your plan administrator. The best way is to roll it into an IRA.
Yes, they allow rollovers. I need to decide now if I want to roll it into an IRA or my 401(K)...can someone "dumb this down" for me so I know which to do...what is the advantage of an IRA?
thanks
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| Posted 10/22/07 12:17 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Possible stupid 401(K) question
Posted by stephanief
Posted by Blu-ize
Most likely, you cannot roll it into your current 401(k). Check with your plan administrator. The best way is to roll it into an IRA.
Yes, they allow rollovers. I need to decide now if I want to roll it into an IRA or my 401(K)...can someone "dumb this down" for me so I know which to do...what is the advantage of an IRA?
thanks
Advantages of an IRA
-Control over your investments
-No TPA fees or administration fees
- You can continue to contribute to an IRA as well as a 401k.
-You can pick inexpensive funds or stocks.
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| Posted 10/22/07 12:20 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Possible stupid 401(K) question
Posted by shamrock124
Posted by stephanief
Posted by Blu-ize
Most likely, you cannot roll it into your current 401(k). Check with your plan administrator. The best way is to roll it into an IRA.
Yes, they allow rollovers. I need to decide now if I want to roll it into an IRA or my 401(K)...can someone "dumb this down" for me so I know which to do...what is the advantage of an IRA?
thanks
Advantages of an IRA
-Control over your investments
-No TPA fees or administration fees
- You can continue to contribute to an IRA as well as a 401k.
-You can pick inexpensive funds or stocks.
Thanks, I appreciate the feedback
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| Posted 10/22/07 12:21 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Possible stupid 401(K) question
Posted by Blu-ize
Most likely, you cannot roll it into your current 401(k). Check with your plan administrator. The best way is to roll it into an IRA.
It depends on your company. I rolled mine over from a previous job.
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| Posted 10/22/07 12:25 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Possible stupid 401(K) question
Posted by shamrock124
Posted by stephanief
Posted by Blu-ize
Most likely, you cannot roll it into your current 401(k). Check with your plan administrator. The best way is to roll it into an IRA.
Yes, they allow rollovers. I need to decide now if I want to roll it into an IRA or my 401(K)...can someone "dumb this down" for me so I know which to do...what is the advantage of an IRA?
thanks
Advantages of an IRA
-Control over your investments
-No TPA fees or administration fees
- You can continue to contribute to an IRA as well as a 401k.
-You can pick inexpensive funds or stocks.
IA-The 401(k) is too limiting.
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| Posted 10/22/07 12:26 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Possible stupid 401(K) question
The main benefit for a 401K rollover is the principal you bring in. That money will increase your interests with the "new" money you bring in.
The rollover is already vested. You will not lose it (only to bad investment choices).
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| Posted 10/22/07 12:28 PM |
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