401k and IRA?

Question

should i roll over my 401k to my new job 401k and roll it over as an IRA and start a new 401k?

from which company is the best IRA?

why would i make more money on an IRA vs 401k ?

Answer 1

Your old 401K should be rolled over to your IRA and then you have complete control. A new 401K should be started at your new place of employment and you should contribute the maximum amount to it before any additional contributions to your IRA. Good luck..

Answer 2

It is more economical to roll over a 401k to an IRA or Roth IRA. As far as starting a new 401k with you new company only do so if they match your contribution and then only contribute to the amount or percent that they match. Otherwise use those monies to fund you IRA.

Answer 3

I'm not sure why it would be "more economical" to roll it over to the IRA rather than into the new 401(k) plan.

If you get to your new job and review the fund lineup and they offer quality funds, move the money into the 401(k). If it is inferior to the old plan, roll it into the IRA.

Both moves should be direct rollovers to avoid the 20% mandatory withholding. This would involve a trustee to trustee transfer. The money will remain tax-deferred with no penalty.

Ron, ChFC