2007-08-24 10:49:38 · 5 answers · asked by Ferdie 1 in Business & Finance ➔ Personal Finance
Steve is right to a point but you will be limited on the roth to 4K so i would put 4k in the roth and the rest in a regular ira -- edward jones is a great broker have had them for years and they have numerous office through out the states!!!
2007-08-28 07:43:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It sure is! Sitting in her old 401K may not be as profitable as rolling it into a new IRA. She can call her former company and ask them what interest is being paid as it sits there. Before rolling it over, be sure to call around to different banks for rate quotes. Your smaller community banks usually offer better rates and don't charge a service fee for maintaining it while in their care. The bank that is going to accept the IRA will actually have you sign a transfer form and send it to your former employee requesting the check be sent to them. At that time, you will go in or they will mail the necessary paperwork for your final signature.
Getting a little deeper. Does her new job offer retirement? IF they don't, she can open a SEP, but only if she doesn't have a retirement at the new job.
2007-08-24 10:59:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I would consider a ROTH IRA. You will have to pay taxes now, but the earnings are tax free at retirement. Both a traditional IRA and a ROTH are usually better than leaving the money in the old plan. You keep all the tax benefits and are not limited to the investment options provided by the employer.
2007-08-24 12:10:52 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
It is the only choice that makes sense. Make sure the advisor you choose (I'd try an Edward Jones office) sets you up inot something you can continue to contribute to.
2007-08-24 10:57:25 · answer #4 · answered by fkd1015 4 · 0⤊ 0⤋
Yes, you need to check out daveramsey.com
2007-08-24 11:04:27 · answer #5 · answered by Anonymous · 1⤊ 0⤋