401k to Roth?
Hi Terry my name is Gina I worked for a small corporation for over 17 years I’ve been investing in a 401(k) and I am fully vested. I am looking to switch careers in the company I am looking at is smaller and does not offer a 401(k). Should I be concerned can I get just as good of a tax benefit if I put into a IRA? What would you recommend I have approximately 70,000 invested .
Terry Says
Well, you would have two choices — to leave the old 40l(k)behind or roll it over directly to an IRA rollover account. (You probably don’t want to do a Roth conversion on this rollover, because you could use up all your spare cash paying taxes on it.)
But with your new job, if they don’t offer benefits, and depending on your income, you could open up a Roth IRA at a place like Fidelity or Vanguard. You won’t get a tax deduction or a matching contribution, but all the money will grow tax free.
(If the new, smaller business really wants you –but doesn’t offer a retirement plan –I’d ask for more money — $6,000 more — to make your IRA contribution!)
