401k to IRA

[kneifl]

Thinking of taking my 401k and turning it into a Roth IRA. Any tax advantages to doing this? It seems like it will be the best bet for me to do it this way because of going to a new job where the employer won't match it for a year. Have any of you done this before and is there anything I should know?

kneifl

 

[nagrawa]

One disadvantage is that you will not be able to take a loan from your roth IRA.
Additionally Roth IRA is post tax contribution so you will get taxed on the money you transfer

 

[kneifl]

Thanks!

kneifl

 

[dawgball]

You can only transfer in a certain amount per person per year into a Roth IRA. Also, as stated above, Roth IRA money is post-tax dollars in but you do not pay any taxes when you qualify to take it out.

A Roth IRA is probably the second investment vehicle you should be fulfilling after contributing to any employer-matched funds. This is strictly for retirment, though, because there are heavy penalties for early withdrawal.

If you are wanting to be responsible for your trading, then you may be asking about a self-directed IRA.

 

[SixFive]

yep, you can only do a certain amount, and you'll have to pay taxes. However, you can roll it all into a traditional IRA (I've had to do that a few times).

 

[kneifl]

I might have to just do the Traditional IRA then. Thanks guys.

kneifl

 

[Agent 0659]

Do the Roth first for sure.

 

[BobbyBlueChip]

keep it in your old plan until you're eligible for the new one.

 

[Irish]

That Roth is a shady bastard....Trust me if you send 401K to the IRA we are just going to use it for booze and weapons. No matter what the others say.
:mj14:
Cheers
Irish

 

[kneifl]

That Roth is a shady bastard....Trust me if you send 401K to the IRA we are just going to use it for booze and weapons. No matter what the others say.
:mj14:
Cheers
Irish

:mj07: :lol: :lol2:

kneifl

 

[Jaxx]

If you like the options that your existing 401k plan has as far as investing in diffferent funds and having the ability to change your account on line I would keep it in there for as long as you can if not transfer it to a traditional ira which you have to go through an advisor to do and if you want to make any changes will have to do it through the advisor. The roth is not a option for this money unless you have less than few thousand dollars in it. Good luck on what ever you do.