401k Roth Distribution due to Termination
I’m 24 years old with $9,190 in Roth 401k, $1,119 in employee pretax, and $471 employer match, totaling value of $10,780.
Should I take a check distribution to myself or do you suggest a rollover? I have savings/checking of $70,000. My current goal is to be a home or an investment property. I don’t know my tax or penalty on the Roth portion, the account is less than one year old. If I do not make an election, paychecx may process an involuntary distribution of my assets into an IRA or in a check directly to me. What do you suggest that I should do?
Terry Says
I suggest that you keep that Roth IRA going, now that you started it. Contact Vanguard or Fidelity immediately and ask them to help you do a rollover. At your age, just invest in teh S&P 500 stock index fund. And keep adding to it every year. One day you’ll be glad you did.
A home is another great idea. You can do both!!!
